“We have a 15-year contract. We will start to drill at two new wells in August,” said GSS Energy executive director Suyuliyanto Badung Tariono as reported by kontan.co.id on Friday.

GSS Trembul is a joint venture firm established by Singapore-based PT GSS Energy Limited and PT Sarana Pembangunan Jawa Tengah (SPJT), which is owned by the Central Java provincial administration.

The exploration activities will occur in two villages -- Karang Tengah and Talokwohmojo – in Ngawen district, Blora regency.

The oil field covers 47.60 square kilometers with a total oil reserve of 40.1 million barrels. Operations have occurred in 24 oil wells in Ngawen since the Dutch colonial era. However, only 307,000 barrels of oil have been drilled out since then.

Badung said the drilling, which occurs at a depth of between 800 and 1,350 meters, was based on research carried out by Standard Oil PD Jersey, known now as Exxon, a subsidiary of a Dutch firm, Nederlandsche Koloniale Petroleum Mij (NKPM).

The company established operations in the area in 1917, but closed down in 1942 when Japan invaded Java in World War II.

“Trembul was abandoned not because of less potential, but exploration in other areas was cheaper. If we are successful here, we will expand to other areas near Trembul,” said Badung, adding his company would invest some US$7.6 million for the drilling. (bbn)

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