PSCDoes someone know what a PRE APROVED PLAN with govt means in this article of PSC signing:
Sonoro, subsidiary and partner eye development with Selat Panjang PSC now executed in Indonesia
Nov. 4, 2019
The ink is now dry on the contract—and Sonoro Energy, its subsidiary and its partner are ready to get to work in Central Sumatra.
As reported by Sonoro Energy and Indonesian online media outlet detik.com on Oct. 14, 2019, Sonoro (through wholly owned subsidiary Zamatra Bakau Straits Ltd.) and Indonesian partner PT Menara Global Energy formally executed the Selat Panjang Production Sharing Contract (PSC) with Indonesia’s Ministry of Energy in Jakarta.
The Selat Panjang PSC spans approximately 940 square kilometers in Riau province, Central Sumatra, lying within a prolific hydrocarbon basin and surrounded by several major PSCs that currently produce more than 45% of Indonesia’s oil.
“We are grateful to MIGAS and the Ministry of Energy and Mineral Resources for allowing us the opportunity to develop the project with a preapproved Plan of Development for all four existing fields,” notes Bill Marpe, general manager of Sonoro Energy Indonesia. “The potential for meaningful hydrocarbon production is very good—and the block is located close to infrastructure and markets that we can capitalize on.”
Since the 1940s, Riau province has produced more than 14 billion barrels of oil. A former Plan of Development report suggested original oil-in-place of 37.5 million barrels, and gas in place of 118.4 billions of cubic feet from the upper and middle Pematang reservoirs.
“Today the signing has been done. They see the existing conditions and commit to do what is the commitment form they have proposed,” remarked Arcandra Tahar, Deputy Minister of Indonesia’s Ministry of Energy and Mineral Resources (ESDM), after watching the signing at the ESDM Ministry Office.
The Selat Panjang PSC carries with it a five-year work program commitment of US$74 million, with a signature bonus of US$5 million, and a contract duration of 20 years.
The Selat Panjang PSC 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, and will provide services as operator of the project.