Indonesia Energy's Drilling Budget Gets Approval

Indonesia-focused Indonesia Energy Corporation (IEC) March 24 said state-run Pertamina has approved its technical programme and drilling budget for 2020.

Pertamina has also granted IEC the permit to start the bidding process to secure drilling contractors for its 2020 drilling campaign at the company’s 63,000-acre Kruh block in Sumatra. In addition to seeking bids for drilling contractors, the company said it has started the procurement and services engagement processes necessary to start its planned drilling operations for six new wells when its operatorship at Kruh Block renews in May 2020. The procurement process is expected to be completed in Q2 2020 so that drilling can begin in close proximity to the renewal of the Kruh operatorship, the company said.

IEC has said that notwithstanding the recent drop in oil prices and Covid-19 outbreak, the company remains on track to move forward with its 2020 plans to drill and complete six new production wells on its Kruh block, which is expected to significantly increase production and cash flow in 2020. 

The six new wells will cost approximately $1.5mn each and will bring IEC's average production cost to $21.34/barrel or lower, it said.

Regarding IEC's 2020 exploration and appraisal plans for its 1,000,000-acre Citarum block in Java, the company announced that it has completed the technical evaluation for 2D seismic survey planning and the environmental baseline assessment and has also attained the government approval of a permit to start the 2D seismic survey acquisition programme.