By Godang Sitompul
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The Ministry of Energy and Mineral Resources is considering a request from PetroChina to have majority interest in the Selat Panjang PSC, Riau Province, and to take over the operatorship of the block from financially-troubled Petroselat Ltd, according to a source.
The source, however, said to Petromindo.com on Thursday that upstream oil and gas authority SKK Migas has proposed for the termination of the PSC following failure by Petroselat to implement its investment commitments in the oil and gas block.
?SKK Migas proposes for termination of the block, but PetroChina wants to take it over,? the source said. ?Petroselat wants to farm out (its interest) to PetroChina,? he added.
Petroselat, a subsidiary of IDX-listed PT Sugih Energy Tbk, holds a 55 percent interest in the Selat Panjang PSC as the operator, while PetroChina holds the remaining 45 percent.
PetroChina did not immediately response to request for confirmation.
In August of this year, it was reported that ten vendors of Petroselat filed a report to the National Police Criminal Investigation Department against the company for failing to pay maturing claims totaling US$5 million.
In May of last year, logistic firms PT Richland Logistics and PT Sentosasegara Mulia Shipping filed bankruptcy lawsuit against Petroselat with the Central Jakarta Commercial Court after Petroselat failed to pay maturing debts, respectively worth US$402,027 and $448,442.
Sugih Energy, Petroselat?s parent company announced in July of this year it was planning to increase gas production at the Selat Panjang block through the drilling of new wells and work over of existing wells.
Under the planned expansion of the Selat Panjang PSC, the company said it will drill a total of 10 wells until 2019. Under its approved 2017 work program and budget, the company plans to drill two wells. Next year, it plans to drill three wells, and five wells in 2019.