Sumatra Persada finds oil in West Kampar block
? claiming Australian firm Oilex has zero percent interest in the block
Friday, July 16 2010 - 03:47 AM WIB
?PT Asiabumi Petroleo hereby announces that its subsidiary PT Sumatra Persada Energi, the operator of West Kampar PSC, has found oil at Pendalian#4, which is located 450 meters away from Pendalian#3 well,? John told Petromindo.com. on Friday.
The oil reserves were found in four layers in the well. During rate flow test, oil flowed at 500 barrels per day in each layer, he said.
?We are now discussing the plan of development for Pendalian with (oil and gas upstream sector regulator) BPMIGAS with production expected to start in the end of this year. The development program of Pendalian requires another three to four production wells in the end of the year,? John said.
He said production from Pendalian field could top 4,000 bpd and the firm is looking for US$100 million in funds to find new oil reserves in the next four to five years.
Earlier, Australian firm Oilex Ltd announced that it had won arbitration ruling against SPE that requires Asiabumi Petroleo repay US$4.6 million debt which SPE owes to the Australian firm.
As a result of the arbitration ruling, the company has claimed it now has a 67.5 percent interest in the West Kampar block as it is entitled to have assigned an additional 22.5 percent to its holding through the exercise of its rights under a Power of Attorney granted by SPE following the failure of SPE to repay funds due.
John however said SPE has wholly owned West Kampar block since January 2009 following ?termination of Oilex's 45 percent working interest (in the block) and cancellation of the farm out agreement."
SPE terminated the 45 percent working interest in farm-out agreement with Oilex upon Oilex's failure to fulfill its sole carriage to the PSC firm obligation stipulated under the FOA 1 signed in May 2007 with SPE.
"The obligations valued at US$ 8.9 million consist mainly of seismic obligation and cash payment (excluding compounding interest)," said Jhon.
Jhon added the termination of the 45 percent working interest is duly executed and has been officially informed to BPMIGAS. ?Thus as of to date, Oilex's current working interest in The West Kampar PSC is Nil or Zero percent,? John said.
"SPE has also applied tort case in Indonesian (court) against Oilex and its key employees with regards to misconduct related to the Operation of West Kampar PSC," said Jhon.(Godang)