Canada's Sonoro Eyes Oil, Gas Projects in Indonesia

Canada-based, Indonesia-focused Sonoro Energy signed a memorandum of understanding with an Indonesian firm to develop oil and gas projects in the southeast Asian nation, it said September 11 without identifying the Indonesia company.

“This strategic relationship is focused on the pursuit of activities related to the Budong-Budong project in West Sulawesi, Indonesia and also includes other conventional oil and gas opportunities in Sumatra, Indonesia,” Sonoro said.

In July, Sonoro Energy said that the Indonesian energy ministry declined its second request for an extension of the Budong Budong production sharing contract (PSC) in Sulawesi. Sonoro and its Indonesian partner will continue to seek this extension from the Indonesian government under the current PSC arrangement, Sonoro said.

In addition, Sonoro and its partner intend to submit a joint bid in response to Indonesia’s conventional oil and gas 2nd bidding round for October 2018. “If successful in its bid Sonoro will have an interest ranging between 25% to 49% and will act as operator. Specific details about the new project and the Indonesian company will be provided if and when the joint cooperation is awarded the project or if and when Budong Budong is granted an extension of its term,” Sonoro said.