Large Indonesian oil block draws interest

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A $600-million Indonesian offshore oil project headed by Australian oil firm AWE Ltd is gathering investor attention from major Asian companies.

Last January, the company acquired two Indonesian oil blocks, including Ande Ande Lumut, which has an estimated 76 million barrels of recoverable oil, as well as Malaysia’s Genting Bhd (GENT).

However, up to 50 per cent of the Ande Ande Lumut block will be sold to a partner the first half of 2013, Bruce Clement, the managing director of AWE Ltd, told Bloomberg.

“We’ve had a number of companies approach us and there’s a lot of interest from regional players, both Australian and Asian-based companies,” Clement was quoted as saying by Bloomberg on September 5.

“There aren’t that many undeveloped oil fields like this with an opportunity to get in at a very early stage of development,” he added.

Oil operations in Indonesia have documented mixed results in recent news.

The Kerendan project in Kalimantan conducted by Sound Oil plc, an independent oil and gas exploration company from the UK, has turned up positive results.

However, the company’s stakes in the Jatayu-1 well has been disappointing, with data unable to confirm the presence of gas.

Exploration activities are nonetheless planned to keep on schedule.

Drilling began for the first well of the Kerendan project yesterday, and three more are to follow. Operations are expected to take six months to complete.

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Reading Time: 1 minute

A $600-million Indonesian offshore oil project headed by Australian oil firm AWE Ltd is gathering investor attention from major Asian companies.

Reading Time: 1 minute

A $600-million Indonesian offshore oil project headed by Australian oil firm AWE Ltd is gathering investor attention from major Asian companies.

Last January, the company acquired two Indonesian oil blocks, including Ande Ande Lumut, which has an estimated 76 million barrels of recoverable oil, as well as Malaysia’s Genting Bhd (GENT).

However, up to 50 per cent of the Ande Ande Lumut block will be sold to a partner the first half of 2013, Bruce Clement, the managing director of AWE Ltd, told Bloomberg.

“We’ve had a number of companies approach us and there’s a lot of interest from regional players, both Australian and Asian-based companies,” Clement was quoted as saying by Bloomberg on September 5.

“There aren’t that many undeveloped oil fields like this with an opportunity to get in at a very early stage of development,” he added.

Oil operations in Indonesia have documented mixed results in recent news.

The Kerendan project in Kalimantan conducted by Sound Oil plc, an independent oil and gas exploration company from the UK, has turned up positive results.

However, the company’s stakes in the Jatayu-1 well has been disappointing, with data unable to confirm the presence of gas.

Exploration activities are nonetheless planned to keep on schedule.

Drilling began for the first well of the Kerendan project yesterday, and three more are to follow. Operations are expected to take six months to complete.

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