Saka plans up to $200m capex next year

Upstream company PT Saka Energi Indonesia, a subsidiary of IDX-listed gas distribution firm PT PGN Tbk, has allocated between US$150 million and $200 million worth of capital expenditure next year.

Saka President Director Tumbur Parlindungan said on Tuesday that the capex will be used to finance planned drilling programs next year. ?About $60 million-$100 million will be allocated for Pangkah block,? he said.

As reported by this portal on Tuesday, Saka plans to drill four development wells and one exploration well at the Pangkah block, in East Java Province, next year. The company owns 100 percent of the block.

Saka also plans to drill one exploration well in South Selulu block, East Kalimantan Province, and another exploration well in Wokam II block, Papua Province.

Last year Saka Energi drilled three wells including one exploration well and two development wells. The company also conducted a number of seismic and G&G studies. It had also obtained in October of this year approval for the plan of development (POD) of the Sidayu field in Pangkah block. The field is targeted to start production in the second quarter of 2019.

Saka Energi aims to increase oil and gas production next year by 5-10 percent from this year?s estimated output of around 57,000 boepd.

Saka owns interest in 11 oil and gas blocks both at home and overseas, but three including South Selulu, West Bangkanai, and Wokam II blocks are still in exploration stage and have yet to start production.

Saka?s producing blocks are Muara Bakau, Bangkanai, Pangkah, Ketapang, Southeast Sumatra, Muriah, Sanga-Sanga, and Fasken. The last is located in the US. (*)