Due to a farm-in agreement with Kuwait Foreign Petroleum Exploration Co (KFPEC), 40% of Lundin Petroleum’s interest in the well has also been transferred to a KFPEC unit.
The transfer is still subject to government approval, as well as acceptance by Block partner CNOOC.
In a statement Lundin said, “The exploration well in the Blora Block, Indonesia has spudded. The main target of the well is the Oligocene Sandstone formation, a well known and proven reservoir in the area. The drilling operations will be completed in the fourth quarter and the total depth is expected to be 1,235 metres.”
“Under a farm-in agreement reached with Kuwait Foreign Petroleum Exploration Co, Lundin Petroleum is transferring a 40% working interest in the Blora block to a KFPEC subsidiary. As part of the agreement KFPEC has agreed to fund a percentage of Lundin Petroleum’s Padi-1 well costs,” it added.
Should all the approvals be given, Lundin will hold a 43.3% working interest, KFPEC will hold 40% and CNOOC will hold 16.7%.