The Jakarta Post
PT Sarana GSS Trembul, a joint venture between Singapore-based oil and gas company GSS Energy and Central Java province-owned PT Sarana Pembangunan Jawa Tengah, will start drilling activities at two oil wells in Trembul in August.
The firm is carrying out drill site preparation (DSP) as a part of rig installation process and hopes to begin production at the two wells, SGT-1 and SGT-2, in September.
"We will implement a three-year program worth of US$7.6 million," GSS Energy executive director Suyulianto Badung Tariono said in Blora on Friday. "The fund will be used to drill four wells and seismic acquisition activities."
Trembul Operation Area has 24 wells in total that were initially explored by Nederlandsche Koloniale Petroleum Mij (NKPM), a subsidiary of Standard Oil Company of New Jersey, now ExxonMobil, in 1917.
The area has approximately 40.1 million barrels of oil reserve, but NKPM only drilled out around 307,000 barrels.
"We will make two wells first and hope we can produce [oil] at 800-meter and 1,350-meter deep," Badung said. "If everything goes well, we can expand by drilling two more wells, even in other unexplored areas."
Sarana GSS Trembul and PT Pertamina EP, a subsidiary of state-owned oil and gas giant Pertamina, have inked a 15-year joint-operation (KSO) deal to drill the area in November last year.
Pertamina holds an exclusive right to run oil and gas operations in the area granted by the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) in 2013. (tas)