Bass Oil has secured Indonesian regulatory approval for the drilling of the Bunian 6 development well.
The regulatory approval is a milestone for the Australian-listed energy producer as it ramps up production in the South Sumatra basin.
The Bunian 6 well is expected to add an additional 500 barrels of oil per day (bopd) once it comes online, potentially tripling the company’s local production. Currently, the Tangai-Sukananti KSO produces approximately 250 bopd.
Bass Managing Director Tino Guglielmo said the timing of the approval was ideal given the current market conditions.
“We have been eagerly awaiting the approval to drill this well as it is expected to materially boost oil production, this, at a time of elevated oil prices.
“The well is expected online by mid-year as the flowline to site has already been installed and tested.”
Global oil prices have surged as the Middle East conflict collapses supply lines. Brent crude rose 5 per cent to US$108.66 a barrel on March 18.
Logistics for the project are already well advanced. A rig currently contracted to Pertamina EP is slated to mobilise to the Bunian 6 site in May.
Bass confirmed that all necessary materials for drilling and completion are already on-site, and the essential flowline has been installed and tested.
The well is located southwest of the highly successful Bunian 3, which has produced more than 1.2 million barrels of oil to date.
The commencement of Bunian 6 represents the final commitment of the firm work program for the permit. Bass Oil holds a 55 per cent stake and acts as the operator of Bunian KSO.
