Minister approves termination of Mandar, South CPP PSCs
Tuesday, February 16 2016 - 02:20 AM WIB
Upstream authority SKK Migas has terminated two oil and gas production sharing contractors (PSC), namely Mandar PSC, offshore West Sulawesi, and South Coastal Plains Pekanbaru PSC, onshore Riau.
According to SKK Migas?s Head Amien Sunaryadi when presenting SKK Migas year-end report, a copy of which was obtained by Petromindo.com, both blocks were approved for termination by Minister of Energy and Mineral Resources Sudirman said in September 9 of last year.
The Mandar PSC was awarded to American firm ExxonMobil on March 21, 2007. ExxonMobil owns 80 percent interest in the block, and the remaining is held by Malaysian firm Petronas. In early 2013, following the negative results of its drilling activities, the company decided to return the block to the goverment.
The South CPP block was signed on Nov. 13, 2008 and was awarded to Ranhill Energy, a subsidiary of Canada listed oil and gas company Pan Orient Energy Corp. A 227 km 2D seismic program was completed in the second quarter of 2013 and after evaluation of the seismic program result, Pan Orient has decided to relinquish the South CPP PSC. As a result of this decision, the company recorded a net impairment charge of US$13.7 million in 2013.
Editing by Reiner Simanjuntak