SKK Migas approves AFE for drillings in Tunu field
Tuesday, October 7 2014 - 02:46 AM WIB
Upstream authority SKK Migas approved on Sept. 11, 2014 the authorization for expenditure (AFE) for French firm Total EP Indonesie (TEPI) to start drilling two wells namely TN-Fx433 and TN-Fx469 in the Tunu field within Mahakam block, East Kalimantan Province.
SKK Migas spokesperson Zudaldi Rafdi told Petromindo.com that as the AFE has been approved, TEPI can now begin procurement activities that may last through next year until the commencement of well drilling.
TEPI has a 50 percent participating interest in the block, while Japan-based INPEX owns the balance.
Previously, Total has been proposing a five-year transition period for the Mahakam block after the contract on the block expires on Dec.31, 2017 to allow the government to make decision on futher extension in good conditions. However, Downstream Director of state-owned oil and gas firm PT Pertamina (Persero) Hanung Budya said that the firm opposes the transition period.
Editing by Johannes Simbolon