Oilex cancels plan to up interest at Sumatra oil block

Australian oil firm Oilex Ltd announced on Friday that its wholly owned subsidiary Oilex (West Kampar) Limited has elected to terminate the agreement to acquire an additional 15% participating interest in the West Kampar PSC onshore Central Sumatra, from PT Sumatera Persada Energi (SPE).

Oilex retains a 45% Working Interest in the PSC with SPE, the block operator controlling the balance.

Under the deal with SPE, Oilex had the right to terminate the agreement if Government approval to the assignment had not been received by 7 January 2009. Oilex exercised that right by notice, which has been acknowledged and accepted by SPE.

SPE is required to reimburse the funds advanced by Oilex.

?Oilex is continuing to pursue the early development of the Pendalian field and the ongoing work program to maximise the value of the West Kampar asset,? it said.

The Pendalian field, which is located within the PSC is expected to start production this year at the rate of 1,800-2,000 BPD.(alex)