28-05-2008: Genting bags new PSC in Indonesia

KUALA LUMPUR: Genting Bhd has entered into a new production-sharing contract (PSC) with BPMIGAS, Indonesia’s oil and gas supervisory body, for the Kasuri Block in Indonesia.

In a statement yesterday, Genting said its 95%-owned subsidiary Genting Oil & Gas Ltd (GOGL) via Genting Oil Kasuri Pte Ltd (GOKPL) signed the new PSC with BPMIGAS for the block.

The block was awarded to GOGL by MIGAS — Indonesia’s directorate of oil and gas resources — following a direct offer licence for a signature bonus of US$19 million (RM61.75 million) and a commitment to undertake five exploration wells and seismic works.

“In early 2007, GOGL undertook a joint study with the Institute Technology Bandung on the Kasuri Block. The results of this and other studies by GOGL have shown that there are many gas prospects and leads on the Kasuri Block and also some opportunities for oil,” said Genting.

“The Kasuri Block covers an area of 3,534 sq km onshore the Bomberai Peninsula in West Papua and is immediately adjacent to the offshore Tangguh Gasfields (with 14.4 trillion cubic feet of certified proven gas).

“The Tangguh LNG Plant, which is located to the north of Kasuri, will start selling this gas in liquefied form (LNG) in January 2009,” it added.

GOLC’s chief executive officer Ong Tiong Soon said GOGL was in a unique position to be able to safely, efficiently and rapidly explore the Kasuri Block.

“GOGL has not only worked in and studied the area for many years, but the company has all the resources necessary to be able to rapidly undertake an extensive exploration programme. The acquisition of the Kasuri block and its potential opportunities mark a major milestone for GOGL,” he added.

Genting’s oil and gas division has interests in three PSCs, which were signed with BPMIGAS — the Anambas PSC (100%), the Northwest Natuna (100%) and the West Salawati (49.99%).

In addition, the division holds deferred rights with BP Global to long-term cash flows from the Muturi PSC in West Papua, where from end-2008 or early 2009, the Tangguh liqudified natural gas plant will begin producing and selling gas from the Muturi PSC.

In China, the division operates an onshore-enhanced recovery oilfield under a petroleum contract with Sinopec. In Morocco, the division is undertaking survey studies at the Cap Juby Heavy Oil Discoveries in the Ras Juby offshore block.

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