PHE has pulled out from Malaysia SK-305 block
Friday, July 21 2017 - 02:33 AM WIB
Upstream company PT Pertamina Hulu Energi (PHE), a subsidiary of Indonesian state-owned oil and gas firm PT Pertamina, has since last year pulled out from Block SK-305 in Malaysia, according to Pertamina senior official.
?So now, SK-305 is solely managed by (Malaysia?s oil and gas firm) Petronas,? Pertamina Upstream Director Syamsu Alam told Petromindo.com on Thursday.
He did not specifically say why PHE pulled out from the block, saying only it was related to economic reasons.
PHE unveiled in September of last year plan to sell its 30 percent interest in Block SK-305 to Petronas because of the weak oil price environment and as the company wanted to focus on domestic assets. The block, located offshore Sarawak, last year produced 15 mmscfd of gas, and 1,000 bpd of oil.
Elsewhere, Syamsu said that as part of the requirement for post-mining activity (decommissioning), an EPRD (Engineering, Preparation, Removal and Disposal) contract for Block SK?-305 was signed at the end of May by PCPP Operating Company Sdn. Bhd, which is operator of the block, and Sapura Energy as the contractor for the decommissioning job. The contract is worth US$10.2 million.
The offshore facility decommissioning work for SK-305 block will take about 23 days to complete, hopefully in November of this year.
Editing by Reiner Simanjuntak