Brunei refuses to extend Kulczyk Block M license

The Brunei government refused to grant an extension to the term of the exploration period of Kulczyk Oil Venture’s (KOV PW) Block M, which expired on August 27, the company announced yesterday. KOV Borneo Limited, a wholly-owned subsidiary of Kulczyk Oil, holds a 36% interest in Brunei Block M. The reason for the rejection is KOV Borneo and its partners failed to complete a drilling program required under the Block M production sharing agreement prior to license expiry.

Roman Dmytrenko: We note that the refusal of the license extension for Block M does not yet put an end to Block M exploration as KOV Borneo and its partners will continue discussions with Brunei authorities on a new agreement.