Oilex makes 'substantial progress' towards restarting at Pendalian

Oilex said on Monday that “substantial progress” has been made towards its objective to regain a participating interest in the West Kampar production sharing contract (PSC) in Indonesia.

The AIM-traded firm said that was expected to lead to restarting production from the Pendalian oilfield, subject to financing.

It said that, following various meetings and correspondence with the government of Indonesia, and with the support of its local Indonesian partner, the government had advised that the company’s proposed direct bid, through the joint study of the West Kampar Region, was declared “administratively complete”.

As such, the authorities had recorded it as a proposal for a direct offer through a joint study, as stipulated in the Indonesian regulations.

“This confirmation from the government of Indonesia, which is exclusive to Oilex, provides a pathway to conduct the joint study on the proposed development of West Kampar, which will then provide certain preferential rights in the ultimate award of the West Kampar PSC by the government,” the board said in its statement.

“Oilex's interest in the study and ultimate potential award of the PSC will be on a 50-50 joint basis with its local Indonesian partner, PT Ephindo.”

At 1358 BST, shares in Oilex were down 5.64% at 0.1p.