Salamander to start drilling in North Kutei next month

By Puspita Maylana Devi

UK energy company Salamander Energy Plc said that the Ocean General semi-submersible rig is expected to be mobilized to the company?s North Kutei acreage in East Kalimantan around the end of this month.

The company said it would begin to spud the South Kecapi exploration well, which should start drilling in the first half of December.

Salamander has contracted the Ocean General rig under a rig sharing agreement with three other of oil and gas firms operating in Indonesia to reduce costs of mobilization-demobilization, supply chain, shore base warehouse and waste management.

The company has previously said it was committed to drill the South Kecapi, South Kecapi side-track, North Kendang and Bedug prospects in North Kutei. Under the rig sharing agreement, the company has an additional four option well slots to allow follow up drillings in the event of success.

The North Kutei is one of Salamander?s core areas, with potential mean recoverable resources of 3 Tcf of gas and 400 million barrels of oil. It is located within approximately 100 kilometers of the Bontang LNG plant.

Editing by Reiner Simanjuntak