Singapore-listed KS Energy announced Friday that one of its subsidiaries together with its joint operation partner – Pertamina Drilling Services – will deploy the jackup KS Java Star (350' ILC) to Indonesia's West Madura block, located offshore of Java.
The contract for one year, with an extension option of one year, is worth $88 million. Drilling operations are expected to start in 4Q 2012.
Under the agreement, KS Energy will provide exploration and development drilling and work-over drilling services with one cantilever type jackup capable of operating in water depths of up to 300 feet and drilling to depths of 15,000 feet.
"The full $88 million will only be realized when Pertamina exercises the one year option. If Pertamina chooses not to, the contract value will be slightly less," a company spokesperson told Rigzone through a telephone interview on Monday.
According to a published statement by Indonesian state upstream oil and gas regulator BP Migas on July 12, 2012, Pertamina is targeting to produce 30,000 barrels per day of oil and 170 million cubic feet of gas per day from the West Madura block by the end of this year.
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