Ramba Energy says it has put in a bid for an operation cooperation agreement offered by PT Pertamina EP for the conduct of oil and gas exploration and production activities in the West Jambi Operation Area.

The West Jambi Operation Area is located in the northern part of the South Sumatra Basin. The geologic structure in the West Jambi Block consists of a bundle of Northwest-Southeast trending anticlinal folds known to provide structural traps for oil and gas accumulations.

Ramba Energy says it has submitted its acceptance of the offer to Pertamina; which is subject to the formal execution of the KSO (Kerjasama Operasi) or Operation Cooperation agreement.

The company is presently awaiting further instructions from Pertamina and will eventually be required to pay Pertamina the amount of US$1 million ($1.3 million) before the execution of the KSO; and provide an unconditional and irrevocable banker’s guarantee in the amount of US$3.03 million  in favour of Pertamina within 30 days after the execution of the KSO.

Ramba Energy says it will be using its own internal financial resources to fund the obligations.

Historically, the area surrounding the West Jambi Block has been the subject of oil and gas exploration even prior to the Second World War. Currently, the West Jambi Block is surrounded by numerous producing fields for oil, gas and condensate, together with supporting pipelines, depots and other facilities, which among others, are operated by Petrochina, ConocoPhillips, Pearl Oil, Pertamina and Perusahaan Gas Negara. This reduces the exploration risk and cost to exploit the West Jambi Block upon any discovery.

The West Jambi Block is further interlaced with gas pipelines from neighbouring fields; including a gas pipeline connecting PetroChina’s gas field in the Jabung Block to Singapore.