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CEB Resources makes Tuba Obi concession agreement

CEB Resources has announced that it has agreed with PT Akar Golindo (PTAG) to assess the technical and commercial opportunities for monetising gas in and around the Tuba Obi East oil and gas concession in the South Sumatran Basin. Under the terms of the agreement CEB and PTAG will undertake a technical evaluation of the gas production potential of the Tuba Obi East Technical Assistance Contract, along with surrounding undeveloped gas discoveries to provide a detailed assessment of potential opportunities in the region.

The studies will investigate both the potential to sell the gas directly to the Singapore market, the Duri steam-flood project, or other buyers via the major transmission gas pipeline, about 12 kilometres away. Alternatively there is the opportunity to monetise the gas via the construction and operation of an independent power plant, selling electricity into the Sumatran power grid.

Separately CEB announced that it is focusing on short-term cash flow from existing oil production and long-term value potential assets particularly focussed on the Indonesian gas market.

It says over 65 individual opportunities have been screened and a detailed assessment of 9 high graded targets is well advanced. A farm-in offer they have made for one asset is now under consideration by its existing owners.

It is not clear to us whether CEB still intends to be an investment company or whether it hopes to move to the oil & gas sector.

CEB Resources makes Tuba Obi concession agreement

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