Sonoro Enters PSC for Sumatra Block
Calgary-based Sonoro Energy has entered into a production-sharing contract (PSC) to develop the Selat Panjang block in central Sumatra, Indonesia.
Sonoro operates the project with a 25% stake, with an option to acquire an additional 24% depending on operational milestones being reached, it said in a statement on October 15. Its local partner Menara Global Enerji controls the remaining 25%.
The PSC’s execution, agreed with Indonesia’s energy ministry, comes after Sonoro and Menara won rights to the Selat Panjang block in May, during Indonesia’s 2019 conventional bidding round. The block spans 940 km2 of the Riau province 120 km southwest of Singapore. It is surrounded by several major PSCs and to the north, there is a 50,000 b/day oil refinery.
“We are extremely pleased to have finalised the terms of the Selat Panjang PSC with the government,” Sonoro’s general manager in Indonesia, Bill Marpe, said. “Selat Panjang offers excellent opportunities for contributing to the oil and gas production in Indonesia.”
Sonoro has a pre-approved development plan for the block’s four known fields, according to Marpe. “The potential for meaningful hydrocarbon production is very good and the block is located close to infrastructure and markets that we can capitalise on,” he said.