Release: Pacific Oil & Gas to sign two upstream business contracts

In relatively short time for business development of an energy company, Pacific Oil & Gas (PO&G) keeps on increasing its role in Indonesian energy sector, particularly in the upstream oil & gas activities. This is demonstrated by the two contracts to be signed by PO&G Indonesia on 25 April 2007, i.e: The Amendment of Gas Sales and Purchase Contract (GSPA) from Jambi Merang Block and the Joint Operation Agreement (KSO) with Pertamina EP for Perlak Block, which is the first opportunity for PO&G to operate an oil and gas block in Indonesia.

“By signing those two contracts, it means that PO&G is going to increase its investment and role in supporting the government energy policy that is to utilize gas in order to minimize fuel subsidy and to increase oil production through joint operation with Pertamina,” said the President Director of PO&G Indonesia, A.R. Dudung Natanegara.

Jambi Merang Block GSPA Amendment
The Amendment of the GSPA from Jambi Merang Block which will be signed between PO&G, Amerada Hess and PT Pertamina (Persero) as the sellers and PT PLN (Persero) as the buyer for gas supply of 85 mmscfd from 2008 for 12 years.

This gas and condensate development block includes three fields namely Gelam, Pulau Gading and Sungai Kenawang fields. The Gelam field has been in operation since 1998 under a unitization agreement with ConocoPhillips. Indonesia’s Upstream Oil & Gas Supervisory Agency (BP Migas) has released its approval on over US$ 300 million development cost of Pulau Gading and Kenawang fields and the block will have peak production of 120 mmscfd of gas and 12,000 barrels of liquids per day.

The Jambi Merang Block which is located onshore in South Sumatra Province consists of Pertamina (50%), Amerada Hess (25%) and Pacific Oil & Gas (25%).

Perlak Block Operatorship
“After Kisaran exploration block and Jambi Merang development block, PO&G will do its best to make use of the trust as the operator of Perlak production block through Joint Operation with Pertamina EP. We are tasked to reactivate the Perlak oilfield and to increase its production through G&G study, 3D seismic survey and followed by in-fill drilling,“ the President Director of PO&G Indonesia A.R. Dudung Natanegara further said.

In February 2007 PO&G was appointed as the operator of Perlak production block through Joint Operation Agreement with Pertamina EP. Perlak block is located onshore of East Aceh in the Province of Nangroe Aceh Darrusalam. Eight exploratory wells were once drilled by Pertamina and Asamera in Perlak Block. Perlak oilfield then went into production stage by Permindo under TAC Contract with Pertamina before it was suspended.

PO&G is an independent multinational energy resource development company operating throughout the integrated energy supply chain: upstream exploration, development and production as well as midstream and downstream sector. (end of release)