Coro Energy Awaits Approval on Duyung
Southeast Asian focused upstream company Coro Energy Plc said that Duyung PSC partners have agreed to a six-month extension for receipt of the necessary Indonesian approvals for the transfer of a 15 percent interest in the Duyung PSC offshore Indonesia
In February 2019, Coro Energy entered into an agreement to buy a 15 percent share in the Duyung offshore block in Indonesia, containing the Mako gas field. Coro agreed to pay $4.8 million and contribute $10.5 million for the 2019 drilling campaign.
"The customary Indonesian regulatory approvals are expected to follow but have not yet been received. As a result, the Duyung PSC partners have now agreed to a six-month extension to the long stop date under the Duyung PSC acquisition agreement for receipt of the necessary Indonesian approvals to 30 June 2020," said a press release.
Should the regulatory approvals not be forthcoming for any reason by 30 June 2020, the company will instead be transferred 15% of the shares of the Duyung PSC title holder and operating company, West Natuna Exploration Limited, as envisaged under the Duyung PSC acquisition agreement, it said.
Furthermore, following the highly successful appraisal drilling campaign on the Mako gas field in Q4 2019, which saw the Tambak-1 and Tambak-2 wells demonstrate the presence of well developed, high quality reservoir sandstones with a common gas water contact across the Mako structure, the company confirms that Gaffney Cline and Associates (GCA) has been commissioned by the operator on behalf of the Duyung PSC partners to update its view of the Mako field.
The Mako field is located close to the West Natuna pipeline system and gas from the field can be marketed to buyers in both Indonesia and in Singapore, where a heads of agreement with a gas buyer is already in place.