According to Salamander, discussions with the Indonesian regulator BPMigas on development options have commenced and the Simenggaris partners intend to submit a formal plan of development in the first quarter of 2008.
The firm said that there is strong local demand for South Sembakung gas at the Bunyu island methanol plant some 17 kilometers offshore of the Simenggaris block. Work toward defining the resource potential of South Sembakung is being carried out by the partners, and is expected to be completed in early 2008.
James Menzies, CEO of Salamander, said: With gas demand and prices increasing across the region, returning to appraise undeveloped discoveries such as South Sembakung is an attractive and low risk means of generating value.
