Cue bids for Sampang PSC

Cue bids for Sampang PSC

WELLINGTON (Reuter): New Zealand exploration company Cue Energy Resources Ltd said yesterday a consortium of which it is a part has been notified that it is the preferred bidder for the Sampang PSC in Indonesia.

Cue Energy (15 percent), Coastal Oil and Gas Corporation (40 percent) and Santos Limited (45 percent, operator) lodged a bid on June 27 for the Sampang block PSC.

"The consortium has been notified by Pertamina that it is the preferred bidder for the acreage. The work program, expenditure and production sharing contract (PSC) are currently being negotiated with Pertamina," the company said.

It is expected that this process will take several weeks.

Pertamina is the Indonesian state oil company.

The Sampang Block is located offshore in the East Java region, east of the island of Java and immediately south of Madura Island.

The block covers an area of 2677 sq km with water depths ranging from zero to less than 60 metres.

The Sampang Block is immediately to the east of Surabaya, Indonesia's second largest city, a major seaport and industrial center. Extensive port, infrastructure and support facilities are available.