Canada's Sonoro Advances Indonesian PSC

Canada-based Sonoro Energy November 4 said it is in the process of assuming full operations of the Selat Panjang oil and gas concession from Indonesian regulator SKKMigas.

SKKMigas has been in charge of the field operations since the concession was terminated by the government of Indonesia from the previous operator. Sonoro’s local subsidiary, Zamatra Bakau Straits, and its Indonesian partner are staffing the project with technical and operational expertise to optimise the development plan in progress, the company said.

“The co-venturers are in the process of collecting and analysing all technical data on the project and are completing the proposed work program and budget for approval by the partners and submission to SKKMigas as per the project agreements,” Sonoro said, adding that after completing an internal review of the subsurface data, a reserve report will be produced.

The Selat Panjang production sharing contract has a 20-year term and an initial five-year commitment of $74mn. “The partners aim to implement a drilling programme as soon as practically possible to reactivate previous wells where feasible and to commence drilling on new prospective targets,” the company said.

Sonoro holds a 25% interest in the PSC with an option to acquire an additional 24% after completion of certain project milestones.