Repsol and Pan Orient Exit the East Jabung Block

     Repsol SA and Pan Orient Energy said that they would divest ownership of the East Jabung Block after exploration activities did not find oil and gas reserves. Both companies must finalize their exact commitments before leaving the oil and gas block.

the East Jabung Block

     Deputy Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Fatar Yani Abdurrahman said the two oil and gas companies had expressed their intention not to continue developing the East Jabung Block. 

     This decision was made after the discovery of oil and gas reserves from drilling the Anggun-1 exploration well last year. However, the two companies have not yet submitted an official letter on the decision.

"In March there has been no official discussion about the KKKS (cooperation contract contractor) stopping this. We will ask again the KKKS commitments, "he said.

     He explained that if the Anggun-1 drilling had succeeded in finding oil and gas reserves, the contractor would continue drilling the Cantik-1 and Anggun-2 wells. However, because drilling failed to find oil and gas reserves (dry holes), the exploration activities in the East Jabung Block were decided to stop.

"If it is also continued exploration activities there might not be oil and gas findings. In fact, drilling a well for Anggun-1 costs the US $ 30 million, "he said.

     Referring to SKK Migas data, drilling Anggun-1 wells is part of the exact commitment agreed by the contractor with the government when given an extension of the exploration period at the beginning of last year. The Anggun-1 well was drilled on November 14, 2019, and completed on December 10 of the same year.

Repsol

     Besides drilling the Anggun-1 well, other commitments promised were geological and geophysical studies (G&G) and drilling of two more wells. This year, it is planned that Repsol and Pan Orient will undertake two G&G studies and drilling Anggun-2 or Cantik-1 wells depending on the results of the Anggun-1 well drilling.

     After the decision of Repsol and Pan Orient to end activities in the East Jabung Block, SKK Migas reminded that the contractor must still fulfill the obligations of the seventh and eighth work commitments as agreed upon when given an extension of the exploration period.

Investor Daily, Page-9, Saturday, May 2, 2020