Matrix looking for cash for N. Sumatra oilfield
Wednesday, October 9 2002 - 03:41 PM WIB
Anthony Rawlinson, the Singapore-based chairman of Matrix, said the company was conducting due diligence with several possible financiers for a remedial work programme to restore healthy production at the field.
"We have a valuable asset, it does flow oil, we have sold the oil and we have the proven reserves. All we have is a technical blip that can be fixed with money," Rawlinson told Reuters.
Langsa is trickling just 350 barrel per day of crude after one of its two wells was shut due to a technical problem following a leak in a subsea pipeline. The field came onstream in November 2001 at a rate of 7,000 bpd.
Rawlinson said the field -- which has proven reserves of about 18 million barrels -- needs to produce 2,500 bpd to break even.
When asked what would happen if the company could not raise the funds needed, Rawlinson replied:
"We would cross that bridge when we come to it, but at the moment that's not on the table. We have had support from our creditors and service suppliers."
Matrix Oil is operator of the Langsa field, off north Sumatra island, with a 90 percent stake. The remaining 10 percent is held by the privately owned Indonesian company PT Indama Putera Jaya. (*)