West Kampar, Central Sumatra

In 2007, 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 has continued to engage with the regulator and has been advised that its Proposed Direct Bid, through the Joint Study of the West Kampar Region, is declared administratively complete and has been recorded as a proposal for a Direct Offer through a Joint Study as stipulated in ESDM Regulation No. 35 of 2008. This confirmation from the Government of Indonesia, which is exclusive to Oilex, provides a pathway to conduct the Joint Study on the proposed development of West Kampar which will then provide certain preferential rights in the ultimate award of the West Kampar PSC by the GoI. Oilex’s interest in the study and ultimate potential award of the PSC will be on a 50-50 joint basis with its local Indonesian partner, PT Ephindo.


The West Kampar PSC (West Kampar or PSC) covering some 900 square kilometres, is located in central Sumatra, adjacent to the most prolific oil producing basin in Indonesia. Technical work carried out by Oilex and its advisors estimate that the Pendalian oilfield which has produced almost 700,000 barrels of high quality oil, can be quickly brought back online at 350 to 400 bopd and that significant additional production potential may be possible from infill drilling and also water injection support. The return to production will require careful execution in the field given that it has been shut in since 2016. The oil occurs in five good quality, stacked reservoirs with some stratigraphic complexity, and the application of 3D seismic data which has been acquired but not interpreted, should provide a significant improvement in the understanding of the reservoir distribution and future development planning. Access to the data is to be negotiated with the seismic company that acquired it. It is believed that the previous production costs can be reduced. A number of exploration opportunities are present both close to the Pendalian field and in the more distant parts of the block. These require further review evaluation.

Figure 1. West Kampar PSC Location Map, Sumatra, Indonesia

Figure 2. Location Map Central Sumatra Basin Fields and Pipeline Infrastructure