West Kampar, Central Sumatra
Oilex entered into a farmin agreement with Sumatera Persada Energi (SPE) to acquire 45 % equity in the West Kampar PSC in Central Sumatra, Indonesia. A subsequent arrangement whereby Oilex would acquire an additional 15% was terminated so the Joint Venture currently comprises Sumatera Persada Energi (55%) and Oilex (45%).
The Pendalian-3 well was drilled and tested in late 2007 and confirmed the presence of two shallow producible oil zones in the Sihapas Sandstone reservoirs. An application to produce from the Pendalian-3 well was submitted to the Indonesian regulator in 2008 and a seismic program initiated.
Following a dispute with SPE in 2009 Oilex succeeded in obtaining an arbitration award requiring SPE to pay Oilex US$4.6 million dollars. This could not be enforced in Indonesia. SPE subsequently was declared insolvent, and production from the Pendalian field was shut in.
The Company was advised by the Indonesian Government regulator, SKK Migas, That the West Kampar PSC had been terminated following SPE’s failure to meet its obligations under the PSC. The Company continues to engage with the regulator with a view to returning its interest in West Kampar.
|Figure 1. West Kampar PSC Location Map, Sumatra,
|Figure 2. Location Map Central Sumatra Basin Fields and Pipeline Infrastructure