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Saka Energi seeks US$500 mln for block development, considers farming-out South Sesulu block

JAKARTA (rambuenergy.com) – PT Saka Energi Indonesia, a subsidiary of national gas distributor PT Perusahaan Gas Negara Tbk (PGAS), is seeking loans worth US$500 million to fund its oil and gas blocks next year. Portion of the loans will be used to fund its capital expenditure of US$400-US$450 million in 2016.

Saka Energi Finance Director Devi Pradnya said currently the company is in talks with four foreign banks to provide a syndicated loan to the company, which the company expects to receive in the fourth quarter 2015, Investor Daily reported.

The funds will be used to develop its blocks, either blocks in which the company has stakes, such as deepwater Muara Bakau project, which is being developed by ENI (operator) as well as its own oil gas field Sidayu field in Pangkah block, offshore East Java.

Currently, Saka Energi holds 11.66 percent interest in Muara Bakau PSC, which the company purchased in April 2015 from GDF Suez E&P International SA.

Saka Energi holds 100 percent working interest in Pangkah, which was bought from Hess. Recently, Saka Indonesia Pangkah Ltd discovered oil reserves of 300 million barrels.

South Sesulu Farm-out

Meanwhile, Saka Energi seeks to farm out 40 percent of its interest in South Sesulu PSC in East Kalimantan. The company hopes to get new partner by the end of this year.

Chief Operation and Commercial Officer of Saka Enegi Tumbur Parlindungan said a number of foreign investors have expressed interest to acquire working interest in the South Sesulu Block. The farm-out is part of the company’s strategy to develop its oil and gas blocks.

South Sesulu Block is now in the process of preparing Plan of Development which will followed up by production stage in 2018.

In December last year, the company began drilling the South Sesulu Block. In late February this year, the company announced gas discovery of 500 billion cubic feet of gas in South Sesulu. (*)

 

 

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