IEV Holdings Limited, a Singapore's engineering solutions provider, signed an agreement July 7 with Indonesia's national oil and gas firm PT Pertamina EP for the Kerjasama Operasi (KSO) Project in Subang district, West Java, Indonesia.
The agreement, covering procedures for oil lifting and cost recovery as well as the accounting manual for the project, enables IEV to be in a position to sell oil from the KSO Project when production commences.
"The Approved Procedures and Accounting Manual has detailed the commitment from Pertamina in preparation for the oil handling from the Pabuaran Block upon the start of oil production," IEV said in a press release Friday.
Meanwhile, Pertamina has approved IEV's expenses for Phase 2 works (AFE Phase 2) for the project, including the drilling of two additional development wells from the Cilamaya structure, one additional well from the Pabuaran structure, and acquisition and processing of 3D seismic data. The work program under AFE Phase 2 is expected to commence by 1Q 2015.
IEV revealed that preparations for Phase 1 is ongoing with a tender evaluation of rig services for the drilling of CLS-1 twin well scheduled to spud by October. The workover of the gas well at the Pabuaran structure in Phase 1 will also be completed in the same program. The firm has begun to negotiate land acquisition terms for additional wells required under Phase 2 of the KSO Project.
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