Sunday , 28 December 2014
Pipeline Technology
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Sugih Energy still awaits PoD approval for Lemang Block development

JAKARTA (Rambu Energy) – PT Sugih Energy Tbk (SUGI.IJ) said the company is still waiting for the approval of Lemang Block’s plan of development (PoD) from the Special Task Force for Upstream Oil and Gas Business (SKK Migas), which is needed before kicking off the commercial development of the block.

The company said it is currently holding discussions with SKK Migas in relation to plan of development of the block, which is required before entering the production stage. The discussion is not concluded yet.

“We are now waiting for confirmation from SKK Migas about the exploration status (of the block), as well as carrying on the discussion and preparing the plan of development with SKK Migas,” Sugih said.

Lemang Block is located in Sumatera, a region with one of the highest success rates in the world for oil and gas exploration. The block is adjacent to the Jabung Block operated by PetroChina.

Based on volumetric studies from a petroleum consultancy DeGoyler & MacNaugton (D&M), the Lemang Block holds an estimated 511 million barrels of oil and 467 billion cubic feet of gas (gross recoverable prospective resources).

The production sharing contract (PSC) for the Lemang Block was awarded by SKK Migas (previously known as BPMIGAS) in 2007 and will remain valid until 2037.

PT Hexindo Gemilang Jaya (operator) holds 51 percent participating interest in the block, while Sugih Energy holds 49 percent interest (non-operator) through is subsidiary Eastwin Global Investments Ltd.

In addition, Sugih Energy said it has completed the the geology and geophysics in-house study on Kalyani Block, which is located in South Sumatera and Jambi provinces. The study is part of exploration activities on the block.

On the same time, Sugih Energy is also seeking a permit from the Forestry Ministry to conduct 2D seismic survey in the block. The seismic survey is planned to cover 103 kilometers in Bentayan, which is part of the Conservation Area and Productive Forest.

To support the exploration activities on Kalyani Block, Sugih Energy also plans to buy subsurface data of the block, in particularly on Bentayan area which is the main exploration target area for the development of Kalyani Block.

Sugih is also preparing a tender to conduct 2D seismic survey in the Bentayan area. The company set aside US$17,664 to purchase the subsurface data and US$1.3 million to carry out the 2D seismic survey. (*)

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