PHE signs Kampar contract

PT Pertamina Hulu Energi (PHE), upstream subsidiary of state-owned oil and gas firm PT Pertamina, on Monday signed a production sharing contract for the Kampar working area in Riau with the upstream oil and gas regulator SKK Migas.

The Ministry of Energy and Mineral Resources said in a statement that under the contract, PHE will make a three-year investment commitment of US$13.5 million for geology, geophysics, and reservoir studies, and a five-year infill drilling, and drilling of one exploration well.

There?s also a signature bonus of $5 million, the statement added.

The Kampar working area is located in Riau province covering an area of 469.22 sqkm. Total reserves of 12 fields (original oil in place, or OOIP) is estimated at 200.386 MMSTB, while current production rate stands at 1,380 bopd (average production in January-October 2015).

PT Stanvac Indonesia started operating the Kampar area in 1993, and was taken over by PT Medco E&P Indonesia in 1995 until the contract expired in 2013. The government assigned Medco to temporarily operate the area in 2013-2015.

The signing of the production sharing contract marks the transfer of the Kampar area from Medco to PHE, said the statement.

Editing by Reiner Simanjuntak