POG, partners explore lower cost development scenarios for Parit Minyak development
Wednesday, March 30 2016 - 02:57 AM WIB
Partners at Kisaran PSC onshore North Sumatra has yet to make final investment decision (FID) on the development of Parit Minyak oil field as costs are still considered too high in the current low oil price environment.
ASX-listed New Zealand Oil& Gas Limited reported on Tuesday that further work to investigate lower cost alternate development scenarios is required to make the FID.
The company did not give further details.
Earlier this year, an official from operator Pacific Oil & Gas (POG) told Petromindo.com that the FID is expected in the third quarter of this year.
The partnership has received ministerial approval for a Plan of Development (POD) of the Kisaran block. The ministerial approval extends the Production Sharing Contract until 2031.
The approved plan would see up to seven wells at Parit Minyak as the initial phase of development. A low cost development is anticipated, using both rented and permanent facilities and trucking the oil to nearby facilities.
Kisaran PSC is operated by Pacific Oil & Gas (Kisaran) Ltd. (POG) with a 55 percent interest. It is partnered with Bukit Energy (22.5 percent) and New Zealand Oil and Gas Ltd (22.5 percent).
Editing by Reiner Simanjuntak