Sonoro formally executes Selat Panjang PSC
Wednesday, October 16 2019 – 08:16AM WIB
(October 15, 2019) — Sonoro Energy Ltd, through a wholly owned subsidiary company, Zamatra Bakau Straits Ltd., along with its Indonesian partner, announce that it has formally executed the Selat Panjang Production Sharing Contract (“PSC”) with the Indonesian Ministry of Energy on October 14, 2019 in Jakarta, Indonesia.
The Selat Panjang PSC is an approximately 940 sq km area located in Riau province, Central Sumatra and is approximately 120 km southwest of Singapore. A 50,000 barrel per day refinery is located 65 km to the north of the block in Sumatra. Geologically the PSC acreage is within a very prolific hydrocarbon basin and surrounded by several major PSC’s that produce more than 45% of Indonesia’s current oil production.
The Selat Panjang PSC has a 20 year term with a signature bonus of US$5 million and a five year work program commitment of US$74 million. The production sharing contract is structured with variable incentives which make the gross split terms and conditions very attractive for the consortium.
Sonoro holds a 25% interest in the PSC with an option to acquire an additional 24% after completion of project milestones. Sonoro will provide services as Operator of the project.
Bill Marpe, General Manager of Sonoro Energy Indonesia states “We are extremely pleased to have finalized the terms of the Selat Panjang PSC with the government. Selat Panjang offers excellent opportunities for contributing to the oil and gas production in Indonesia. We are grateful to MIGAS and the Ministry of Energy and Mineral Resources for allowing us the opportunity to develop the project with a pre-approved Plan of Development for all four existing fields. The potential for meaningful hydrocarbon production is very good and the block is located close to infrastructure and markets that we can capitalize on”. (ends)