Ramba: Lemang block produces first oil
Wednesday, November 16 2016 - 12:28 AM WIB
SGX-listed Ramba Energy Limited said that the Ministry of Forestry and Environment issued on Tuesday the forestry lease permit to perform oil and gas exploitation for the Akatara Field located in the Lemang block, Sumatra.
Ramba said in a statement that with the issuance of the lease permit, the Lemang block will start its first oil production on Wednesday.
?The production of first oil at Akatara Field is a significant milestone for Ramba, and in light that this is the first new oil production in a while, it is a milestone on its own to the Indonesian oil and gas industry,? said Ramba CEO, David Soeryadjaya in the statement.
The company said the initial production is estimated to be around 500 barrels of oil per day from the Akatara-2 well. ?We will continue to develop the Akatara Field and its potential and expect production to steadily increase as we put other wells online and drill additional development wells in 2017 and onwards,? David said.
For the Lemang block, Ramba is in partnership with Mandala Energy Limited and Eastwin Global Investments Limited. Mandala had farmed in a 35 per cent participating interest in the Lemang Production Sharing Contract from Ramba?s subsidiary, PT Hexindo Gemilang Jaya. Mandala is a South East Asia focused oil and gas exploration and production company backed by leading global investment firm, KKR. The deal was completed in February 2016. Eastwin is wholly owned by PT Sugih Energy Tbk., an Indonesian-focused oil and gas exploration and production company, listed on the Indonesian Stock Exchange.
?While the current oil price environment is benign, we are optimistic about the commercial potential of the Lemang block given its relatively low operating and capital cost structure. We are in a favourable position to deliver on our strategy of developing our fields for the positive contribution to the Group, to the Indonesian people and to satisfy Indonesia?s energy needs in the longer term,? David added.
Editing by Reiner Simanjuntak