Sugih goes ahead with plan to bring Lemang block into production

By Bernard Loebs

IDX-listed Sugih Energy Tbk said it will go ahead with the plan to bring the Lemang block in Jambi into production this year despite low oil prices.

President Director Riyanto Soewarno told Petromindo.com that based on the 2016 Work Program and Budget (WP&B) that has been agreed upon by the firm with upstream authority SKK Migas, the block will start producing in June of this year with an initial rate of 700 bopd. The output will gradually increase to 2,000 bopd at the end of this year.

He said thus far, three wells have been drilled in the block and the firm will drill five other wells in the future.

Sugih Energy has a 49 percent participating interest for Lemang Block through its subsidiary Eastwin Global Investment Ltd., while SGX-listed Ramba Energy Limited, through its local subsidiary Hexindo Gemilang Jaya, holds a 51 percent working interest in the Lemang block as the operator.

Editing by Johannes Simbolon