PGN's Saka Energi Finds 300m Barrel Oil Reserve in Pangkah Block
Gresik, East Java. Saka Energi Indonesia, the oil and gas exploration unit of state-controlled gas distributor Perusahaan Gas Negara, has found a 300 million barrel oil reserve in its Pangkah block in East Java, the company director said on Thursday (29/09).
Saka Energi acquired the block in 2014 as its parent company, also known as PGN, is attempting to get more control over gas supply in the country.
Tumbur Parlindungan, the president director of Saka Energi, said the company is likely to start oil production at the block in 2019.
"There might be more oil in there. We're still exploring the rest of the block," Tumbur said as quoted by Antaranews.com, adding that Saka Energi plans to sell its Pangkah oil to state energy firm Pertamina.
Amin Sunaryadi, the chairman of upstream oil and gas regulator SKK Migas, welcomed the discovery of the oil reserve. Pangkah is an ideal location because of its close proximity to industrial areas in East Java, according to Amin.
Beside Pangkah, Saka Energi now also controls the South Sesulu offshore block in East Kalimantan and the Wokam II block between Aru Islands and Papua. The company also has participating rights in oil and gas blocks in Ketapang, East Java; Muriah, in the Java Sea; Fasken in Texas, US; and Bangkinai in East Kalimantan.
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