Odira Energy to invest $30 m to explore S. Sumatra block

Local firm PT Odira Energy Persada will invest US$30 million in exploration activities at Karang Agung Block in Musi Banyuasin Regency, South Sumatra, Kompas reported Saturday.

The company's president director Farouk Rais said in Palembang, South Sumatra, following a meeting with local vice governor Mahyuddin NS, Friday that the exploration activities were expected to start in 2008.

Farouk said that Panaguan I well in Karang Agung Block has shown an indication of having a gas deposit, while two others, Kubu and Sionar, also on the same block have shown an indication of having an oil deposit.

The three discovery wells were found in 1986 but an exploration has yet to be made since then, he said

Odira Energy signed a contract on operating the Blok on Jan. 16, 2007.

"Seismic study on the oil and gas deposit (on the Karang Agung Block) is targeted to start in August of this year. The seismic study will take about a year to complete," Farouk explained.

He added that the amount of oil and gas deposit in the block would not be known until the seismic study had been completed. (*)