Australia's Artist & Entertainment Group (AEM) said Wednesday that it has taken another step towards acquiring a stake in the producing onshore Wailawi Oil and Gas Project in Indonesia.
The company is seeking to take up an interest in the project at Balikpapan, East Kalimantan, by taking an assignment of rights from Union Pacific Trading (UPT).
Drafting of a new production sharing agreement between UPT's subsidiary Perusda Benuo Taka and Indonesian upstream oil and gas regulator BP Migas is now nearing completion, AEM said. The agreement will allows Perusda Benuo Taka to receive a share of the net project earnings generated from the project, on the condition that it meets its obligations under a production sharing contract and carry out further exploration activity in the area.
"The company will provide updates towards the end of the week about the PSC. No further details can be disclosed at present," a company spokesperson told Rigzone.
According to a statement published by AEM on February 27, 2012, the Wailawi Oil and Gas Project was discovered in 1975 and brought into production in 1979. The project was producing gas from just four wells, with peak production reaching 18 million cubic feet of gas per day in 1985. Two more wells were drilled in 1986 with production continuing until 1999 when the field was put on "care and maintenance" following the Asian financial crisis in the late 1990s.
Perusda entered a production sharing agreement with BP Migas in October 2005 and the field was subsequently brought back into production in March 2011, data from an investor presentation prepared by AEM in November 30, 2010 shows.
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