Mirach returns Kampung Minyak field to Pertamina
Thursday, November 9 2017 - 01:27 AM WIB
SGX-listed Mirach Energy Ltd said it has decided to return the Kampung Minyak oil field (KM) in South Sumatra back to Indonesia?s state-owned oil and gas firm PT Pertamina.
This follows the company?s move in February of this year to cease production in the wake of weak oil price environment to help limit further losses.
?Weak economic climate in the Indonesian oil exploration sector continued into third quarter of 2017? The Group had thus decided to return the KM Oil Field back to Pertamina,? Mirach said in a statement on Wednesday.
The company, however, said it will still continue to look for new opportunities in the oil and gas service sector.
Mirach Energy was licensed to produce oil at the Kampung Minyak Field for 15 years under a KSO (Joint Operation Agreement) with PT Pertamina. The field covers 45 square kilometers with 65 million barrels of OOIP mainly located in the reservoir formation between 200-500 meters. The company was partnering with one of the most successful EOR firms in Asia, Daqing Enterprise International, a subsidiary of PetroChina Daqing Oilfield Company Limited, to rejuvenate the field and enhance production rates.
Editing by Reiner Simanjuntak