Ranhill has the option to acquire an additional 2% stake in Ellipse Energy at a later date.
The Jatirarangon Block concession is for 20 years and, under an agreement signed between Indonesia state-run Pertamina, Ellipse Energy and Wasana Sad Karya (WSK), both Ellipse and WSK will provide technical assistance to Pertamina for the “exploration, development, extraction, production, transportation, marketing, abandonment and site restoration”.
In a statement Ranhill said, “The project is now in the final stages of the first development phase, with the first two wells expected to begin production in August 2004.”
“It is expected that future contributions from the share of profits in Ellipse Energy will outweigh the additional expenses that Ranhill will incur,” added the company.
Ellipse Energy is the principal and operating concession-holder for the Technical Assistance Contract (TAC) of the Jatirarangon Block and has a 70% interest. The balance is held by WSK.
