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Repsol to obtain extension to drill Adaman oil block in Aceh
Repsol is expected to begin drilling the 8,440 square-kilometer block in the first half of next year.
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Drilling operations take place at the Masela oil and gas block in the Arafura Sea in eastern Indonesia. Spanish oil company Repsol will obtain a two-year extension on its contract to operate in the Andaman III oil and gas block in Aceh. (Courtesy of/maritim.go.id)
T
he government is processing a two-year extension for Spanish oil company Repsol to operate in the gas-rich Andaman III block, which is located off the coast of Aceh province.
An official from the Aceh Upstream Oil and Gas Management Agency (BPMA), which oversees oil and gas exploration and production in the province, told reporters in Jakarta on Tuesday (6/11) that the agency had sent a letter on the matter to the Energy and Mineral Resources (ESDM) Ministry and that, therefore, the ball was in the ministry’s court.
“[Repsol] will be basically continuing unfinished programs, including drilling one oil and gas well,” said BPMA deputy for planning and operations Teuku Muhammad Faisal. He noted that the company would also work to procure drilling-related equipment such as casings and drilling ships.
Repsol is expected to begin drilling the 8,440 square-kilometer block in the first half of next year.
Faisal added that BPMA’s recommended two-year extension is longer than the one-year extension requested by Repsol itself. He said the contract extension was needed to allow Repsol to continue its exploration activities.
“Looking at their preparation last year and this year, they are optimistic, confident, that one year is enough. But we did not want to risk it. It would complicate things for regulators as well,” he said.
Meanwhile, ESDM acting oil and gas director general Djoko Siswanto separately told reporters that the ministry was still waiting to receive BPMA’s recommendation, which “should take about one to two days”.
