Kuala Lumpur: Kulim Energy Nusantara (KENSB) has signed a joint operating agreement (JOA) to participate in the exploration and development of an oil and gas field in South West Bukit Barisan Block (SWBB), Central Sumatera, Indonesia.
The three parties in the JOA are PT Radiant Bukit Barisan E&P (PT RBB), which will be the main operator of the project, with PT Graha Sumber Berkah (PT GSB) and KENSB as co-operators.
KENSB, a subsidiary of Kulim (Malaysia), will receive up to 60% of net profit from the project; the remaining balance will be split among the other parties.
The new JOA is part of Kulim's long-term business plan to diversify its business activities to other sectors away from oil palm plantations.
PT RBB entered into a SWBB Production Sharing Contract (PSC) agreement on November 13, 2008, with PC (SKR) International and Satuan Kerja Khusus Pelaksama Kegiatan Usaha Hulu Minyak & Gas Bumi (SKKMigas). The PSC is effective for a period of 30 years.
The total cost for exploration activities in 2015-2018 is estimated at RM175.7 ($53.65m). The exploration area under the terms of the PSC is 779 km2.
PT RBB has already submitted its work program and budget (WP&B) to SKKMigas for approval, in line with Indonesian law. [27/10/14]