document: PT PP Energi has acquired 70% of PT Odira Energi Karang Agung which operates the Karang Agung PSC, located in onshore South Sumatra. According to a company presentation in September 2018, PP Energi is committed to increasing production from the block to 1,000 bo/d.   The share acquisition was completed in May 2018, for a cost of approximately USD 3.1 million. The rationale of the transaction was to expand PP Energyâs footprint in Indonesiaâs upstream business.  PT Odira Energi Karang Agung holds 85% operating interest in the PSC. Consequently, PP Energi will control an indirect interest of 59.5%. The remaining 15% direct interest in the Karang Agung PSC is held by three local government-owned companies.  PT PP Energi is a subsidiary of state-owned construction and engineering company, PT PP (Persero) Tbk. The subsidiary was established in 2016, looking to invest across the energy value chain from upstream to downstream and power, energy financing and commodity trading, in order to support Indonesiaâs energy needs.  The Karang Agung PSC contains the Ridho field which started producing oil in February 2017 and reached approximately 280 b/d one month later. Production capacity from the field has been reported at approximately 2,000 b/d.  The Plan of Development for the field was approved in 2011, and first oil was originally scheduled for 2013. The project experienced several delays due to issues such as securing the necessary forestry permits.   According to local reports in May 2015, Indonesian service company PT Ratu Prabu was planning to acquire 75% interest in the Karang Agung PSC from Odira Energy Persada for a reported price of approximately USD 60 million. However, further reports in August 2015 indicated that Ratu Prabu reconsidered the plan, due to oil price falling below USD 50 per barrel at the time.  Background Information  The Karang Agung PSC is located in the northern margin of the North Palembang Sub-basin of the South Sumatra Basin. Largely covered by Tertiary sedimentation the basin trends east-west to NW-SE and is primarily in back-arc setting. The oldest tertiary sediments are the Lahat Formation representing syn-rift deposition, with possible lacustrine deposits of Eocene age. This is followed by the Upper Oligocene to Lower Miocene Talang Akar Formation and following further rifting, the build of the Bata Raja carbonates. The latter is not consistent in this area but the former two formations are proven source rock and reservoir in this basin.  Odira plugged and abandoned Ridho 1 outpost as an oil and gas well, in late December 2009. The well, which was drilled to appraise the Sinar 1 oil discovery, was spudded in early November 2009 and was drilled to a TD of 1,700m as planned. It targeted sandstones of the Lower Eocene to Middle Oligocene Lemat Formation and Upper Oligocene to Lower Miocene Talang Akar Formation trapped in an anticline structure. Three DSTs were conducted at undisclosed intervals and the well tested a cumulative rate of 3,682 bo/d plus 10.6 MMscfg/d. This was the second commitment well drilled in the block since its award in January 2007. It followed the drilling of Rahmat 1 new pool wildcat.
summary: Indonesia PT Odira Energy Persada Karang Agung PSC - PT PP Energi acquired 70% of operating company