Pertalahan to get loan for Natuna oilfield development

Malaysian investment banking The CIMB Group via sister companies Bumiputra-Commerce Bank (L) Limited and PT Bank Niaga Tbk have signed an agreement with PT Pertalahan Arnebatara Natuna (PT PAN) on Thursday as Arrangers to offer a syndicated 5-year term loan facility to finance the refurbishment construction and work over programme on two oil wells at the Udang Oil field, offshore Natuna.

Lenders participating in the syndicated term loan facility are BCBL, Bank Niaga, PT Bank Internasional Indonesia Tbk and PT Bank Ekspor Indonesia.

In 2002, PT Pan entered into a Technical Assistance Contract with Pertamina for a concession period of 20 years to conduct petroleum operations which includes exploration, development, extraction, production, transportation, marketing and site restoration within the Udang Oil Field.

The Udang Oil Field is located within the Udang Block in the Natuna Sea together with 4 other oil fields, namely Tiram, Kepiting, Udang-5 and Kerang which covers a total area of 58.8 km2. The size of the Udang Oil Field is approximately 6,000 acres with 26 oil wells in total. Currently it has only 2 oil platforms, namely Platform A (which is already in operations) and Platform B.

In 2005, PT Pan reactivated and revitalised 13 wells and refurbished Platform A which are currently producing 2,500 barrels per day. The development and refurbishment was funded by Bank Loan and shareholders advances.

The syndicated term loan facility will enable PT Pan to refinance the previous Bank Loan, the refurbishment works for Platform B and the work over programme of wells at Platform A.(alex)