Mitra: SKK Migas approves divestment of interest in North Madura PSC

By Romel S. Gurky

Privately-held independent oil, gas exploration firm Mitra Energy Limited announced Monday that upstream oil and gas authority SKK Migas has approved the farm-out of its 25 percent participating interest in North Madura PSC to Azipac Ltd?s unit.

Mitra signed in December of 2014 the farm-out agreement with Azipac North Madura Ltd. The company said that SKK Migas approved the transaction on October 12, 2015.

?Consequently, Mitra no longer has an interest in the North Madura PSC,? Mitra said in a statement.

Azipac also acquired another 25 percent interest in the North Madura PSC from North Madura Energy Ltd.

The North Madura block covers approximately 1850 square kilometers and is located offshore East Java in water depths of 45 meters. The block is located in the NE Java Basin, one of Indonesia?s most prolific hydrocarbon producing areas and is along trend with several producing fields, most notably the Ujung Pangkah and Poleng oil and gas fields. AWE Limited (AWE) operates the block and has acquired approximately 1000 kilometers of 2D seismic over the southern part of the block.

Upon completion of the farm-in, the North Madura PSC will be equally owned by AWE Limited (50%), and AziPac Limited (50%).

AziPac said late last year that it anticipated an exploration well will be drilled on the block in 2016 following analysis of the 2D seismic which was recently acquired over the southern part of the block.

Editing by Reiner Simanjuntak