Medco delays drilling of Madura’s Sebaya-2 appraisal well

Australian oil firm CityView Corporation Limited said Thursday the spud of the Sebaya-2 appraisal well at Madura block in East Java will be delayed to end of October 2004 at the latest.

CityView said the delay was due to the extensive refurbishment of PT Apexindo’s rig and the requisite certification process by the relevant authorities.

“The land for the drill site has been acquired and cleared and most of the contracts for services and materials have been finalized,” CityView said in a statement to the Australian Stock Exchange.

According to consultancy firm Gaffney, Cline & Associates (Consultants) Pte, the central fault block of the Sebaya prospect is estimated to contain about 155 billion cubic feet (BCF) of recoverable gas.

Publicly listed oil firm PT Medco Energi Internasional, the operator of the block, had planned to drill two delineation wells on the prospect but the second well is subject to the success of Sebaya #2.

Medco and state-owned electricity firm PT Perusahaan Listrik Negara have signed a memorandum of understanding (MOU) for a 20 million cubic feet of gas supply from the block to the latter’s power plant in the area starting 2006 for 15-year period.

State oil and gas firm Pertamina has 35 percent interest in the Madura block, while CityView, Medco (operator) and Falcon Oil Pte Ltd hold 16.25 percent, 24.75 percent and 24 percent, respectively. (robert)