Kodel to explore oil fields

JAKARTA (JP): Oil company PT Golden Spike South Sumatra (GSSS) Ltd., a subsidiary of the Kodel Group, will spend US$4 million to explore oil fields in the Pasiriaman block in the Muara Enim and Ogan Komering Ilir areas in South Sumatra.

Company general manager Cholidy Husin Reminton was quoted by Antara news agency as saying on Thursday that the company's technical studies had found two wells in the area with relatively significant oil reserves.

The company will start seismic tests next year, followed by four to five months of well drilling, he said. It will spend $1.2 million for seismic tests and $2.8 million for well drillings.

The block is 40 percent owned by state oil and gas company Pertamina and 60 percent by GSSS. The 60 percent stake owned by GSSS is shared by the government (85 percent) and PT Golden Spike Indonesia (15 percent), the oil and gas unit of Kodel. (jsk)