AWE moves into Indonesia through Bulu PSC
Sydney-based Australian Worldwide Exploration has moved into Indonesia for the first time under a farm in deal with Abu Dhabi firm Aabar Petroleum Investments Co. off East Java.
MELBOURNE, June 22 -- Sydney-based Australian Worldwide Exploration Ltd. has moved into Indonesia for the first time under a farm in deal with Abu Dhabi company Aabar Petroleum Investments Co. PJSC.
AWE will earn a 42.5% stake in the Bulu production-sharing contract, which lies off East Java, by funding as much as $12 million towards the drilling of the first two exploration wells.
The wells, Lisah-1 and Lengo-1, are to be drilled in the third quarter. The Bulu PSC area is 40 km off northeastern East Java in 60 m of water.
AWE said the East Java sedimentary basin is a significant oil and gas-producing region and the area surrounding the Bulu PSC includes a number of discoveries, including in Pangkah, Poleng, and Keopodang fields.
The farmin is consistent with AWE's objective of diversifying its asset base beyond Australia and New Zealand. Elsewhere in Australia, AWE is a partner in Yolla and Casino gas-condensate fields in the Bass Strait (both fields are producing) and the Cliff Head oil field off Western Australia. In New Zealand, AWE serves as operator for Tui oil field, now under development.
APIC will remain operator of the Bulu PSC area with 42.5%. Other participants are PT Satria Energindo 10% and PT Satria Wijaya Kusuma 5%.