bpmigas rejects development plan for sengkang , page-33

In the half year report of Dec 07 it states a comprehensive seismic programme has been agreed with BPMIGA to commence in April/May of 08.

In the 08 Annual report it states that a 2D seismic programme is epected to commence in Aug of 08.

On the same day as the release of the annual report an upgrade to the gas reserves in announced.

In the half year report of Dec 08 it stataes 'In close co-operation with BPMIGAS, EEES are formulating a development plan for the further exploration of identified prospects within the Sengkang Gas Field, including the drilling of production, exporation and development wells in the course of 2009.'

No reference to the previously planned seismic is made. It would appear that the work done by Helix RDS was considered sufficient for the short term or next phase of development.

Without the work from Helix or a seismic survey it would not be possible to progress a POD. The upgrade announcement states the work carried out by Helix is supported by pre-existing seismic. So at this point it may have been considered the proposed development was supported by pre-existing paperwork. Whatever the reason a conscious decision was made to change the way forward, apparently in consultation with BPMIGAS.

I've added two and two and probably got five - who knows. I do not believe however, that someone forgot to submitt a POD or that they didn't realise it was needed until very late, SE has been around for too long.

With the change of government everyone needs to be seen to be following the party line. With the emphasis of retaining LNG in Indonesia who knows how this is playing out in the politics of permitts etc, especially given the fact that EWC's licences pre-date the restrictions on exporting the gas.