Saka looking for rig to drill appraisal well in South Sesulu

By Godang Sitompul

PT Saka Energi Indonesia, the upstream subsidiary of IDX-listed state owned gas distributor PT Perusahaan Gas Negara Tbk (PGN), is looking for a rig to drill one appraisal well in South Sesulu block in East Kalimantan.

The drilling is scheduled for the fourth quarter of 2016, Saka?s Operational Director Tumbur Parlindungan told Petromindo.com.

Saka drilled the first exploration well in the block, SIS-A#1, in December 2014, where it struck gas reserve which is estimated at 500 bcf.

Tumbur said Saka is still interested in drilling.

A source however said to Petromindo.com the drilling is planned because the firm has been approached by a Japanese firm which is interested to buy a stake in the block on the condition that the firm should drill another well to confirm the potentials of the block. The block is 100 percent owned by Saka. Following the gas discovery, Saka announced it was seeking for a partner to develop the block.

?Once another well has been drilled, the Japanese firm will immediately sign sales and purchasing agreement to farm into Sesulu block,? the source said.

Editing by Johannes Simbolon