SPC says suitors delay farm-in decision on political condition

By Godang Sitompul

Indonesian unit of Singapore Petroleum Company (SPC) has thus far been unable to complete farm out process of its Mahakam Hilir PSC block onshore East Kalimantan, as potential suitors are holding back their decisions.

SPC Indonesia Country Manager Sukusen Soemarinda told Petromindo.Com on Thursday that potential farminees are waiting for political condition to settle down. "They are waiting until after presidential election," said Sukusen.

SPC, together with partner Cue Energy plan to proportionally farm out combined 40% interest in Mahakam Hilir. Funds raised from the farm out will be used for further drilling and development at the block, where hydrocarbon had been discovered.

Sukusen earlier told Petromindo.Com that there were four bidder for the farm out. He did not give names.

SPC has 60% interest in the block with the balance held by Cue.

Editing by Alexander Ginting