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AKARTA: PT Capitalinc Investment (MTFN), a financing company which has turned its focus on the oil and gas sector, announced on Wednesday its 40.6 percent owned Tonga Block PSC in South Kalimantan has begun operation at the rate of 500 barrels of oil per day (bopd) from Tonga-01
oil well.

“Tonga is a core investment of Capitalinc. We are excited about achieving first oil production. Cash flow generated from the field will be the source of field development funding of our asset,” said Capitalinc president director See Hoo Ong in a press release received on Wednesday.

The block operator Mosesa Petroleum expects to double production to over 1,000 bopd, with the support of Tonga-03 oil well’s production, which will be commence by the end of third quarter this year.

Tonga block has 7 million barrels of oil reserves and 31.2 million barrels of prospective resources.

In addition to its oil business, the firm is engaged in general trading activities, transportation industry and other related services. Its business segments are finance leases, sharia financing, consumer financing, factoring and other services.