Mahakam Hilir attracts 4 farm-in bidders
Tuesday, April 1 2014 - 06:30 AM WIB
The Indonesian unit of Singapore Petroleum Company (SPC) said that three local and one foreign firms have submitted interest to buy a 40% stake in Mahakam Hilir PSC, onshore East Kalimantan.
SPC Indonesia General Manager Sukusen Soemarinda told Petromindo.Com on Tuesday that the funds raised from the farm-out will be used by Mahakam Hilir partnership for further exploration drilling at the block.
He said SPC and its partner, Australian firm Cue Energy will proportionally divest interest in the block. SPC holds a 60% interest and operatorship in the block with Cue holding the balance. ?However, there?s possibility that the partnership will farm out more interest should the winning bidder is interested,? he said.
He declined to reveal the bidders? names on the ground of confidentiality.
Cue said on Monday that the farm-out process is expected to be completed mid-year.
The partnership has made discovery in the block through the drilling of Naga Utara well.
Editing by Alexander Ginting