MEMR approves extension of Tungkul agreement
Monday, October 13 2014 - 12:46 AM WIB
The Ministry of Energy and Mineral Resources (MEMR) has approved a proposal by PT Pertamina EP to extend its agreement with PT Sarana Patra Jateng in the production of oil from old wells.
The November 3, 2010-agreement, which covers oil production from old wells in Tungkul and Trembul fields in Blora Regency, Central Java (Tungkul Mother Agreement), has been extended to November 3, 2020, said SGX-listed manufacturing company Giken Sakata Ltd in a statement on Monday.
Giken?s newly acquired subsidiary PT Cepu Sakti Energi has a cooperation agreement with Sarana Patra Jateng, under which the former would manage oil production of old oil wells in Trembul and Tungkul.
?The extension of the Tungkul Mother Agreement will provide greater security and certainty in the output from these oil fields,? Giken said.
Editing by Reiner Simanjuntak