Bimantara wins oil, gas contract<\/p>\n
JAKARTA (JP): PT Citraduta Samudra, a subsidiary of the
\nBimantara Group, became the first domestic private company to win
\nan oil and natural gas production sharing contract with the state
\noil company Pertamina.<\/p>\n
Citraduta was one of the four contractors awarded hydrocarbon
\nproduction sharing contracts by Pertamina yesterday. The other
\nthree are Santa Fe Resources (Bangko) Ltd. of the United States,
\nBow Valley Ltd. of Canada and a consortium of Union Texas
\n(Barakan) Ltd. of the United States and Total Barakan of France.<\/p>\n
\"The Citraduta deal ushers in a new era of oil production for
\ndomestic private business entities,\" Minister of Mines and Energy
\nI.B. Sudjana said, who witnessed the contract signing.<\/p>\n
The widely-diversified Bimantara Group, one of the country's
\nlargest business conglomerates, is chaired by Bambang
\nTrihatmodjo.<\/p>\n
Sudjana asked Citraduta, as a newcomer in the upstream
\npetroleum industry, to learn as much as possible from foreign
\ncompanies, which have so far dominated the oil and gas
\nexploration and production field in Indonesia.<\/p>\n
Yesterday's deal allows Citraduta to explore for oil and gas
\nin the 6,670-square-kilometer offshore area at Sepanjang Bloc,
\nEast Java.<\/p>\n
Bambang, who signed the contract for his company, told
\nreporters that, \"It is time now for national companies, like us,
\nto break through the upstream petroleum business.\"<\/p>\n
But he conceded that foreign partners have so far helped his
\ncompanies to grow up.<\/p>\n
\"British Petroleum and Atlantic Richfield Corp., for example,
\nare now our partners in the natural gas field in Pagerungan
\nIsland off the coast of East Java,\" he added.<\/p>\n
Investment<\/p>\n
Under the agreement, Citraduta is committed to investing
\nUS$23,50 million for the first 10 years of exploration in its
\nconcession area.<\/p>\n
Santa Fe, which was awarded a 3,846-square-kilometer onshore
\narea at Bangko Bloc in Jambi, plans to invest $27.90 million
\nduring the first 10 years of exploration. Union Texas and Total
\nBarakan, which got an 800-square-kilometer field offshore
\nSoutheast Maluku, will jointly invest $12.87 million during the
\nfirst 10 years, and Bow Valley will spend $2.80 million in its
\n650-square-kilometer area in Cenako, Riau, during the first six
\nyears of its exploration activities.<\/p>\n
Duane C. Radtke, president of Santa Fe, told The Jakarta Post
\nyesterday that his company -- which also holds several concession
\nareas in the southern part of Surabaya, covering a number of
\nregencies such as Gresik, Lamongan and Tuban -- will use its own
\nequity funds to finance its exploration activities in the new
\narea.<\/p>\n
Bambang said that his company will likely tap foreign loans
\nfor developing its new exploration area. \"But, I cannot give you
\ndetails right now,\" he added.<\/p>\n
Pertamina's director for production and exploration Priyambodo
\nMulyosudirjo told the Post that the government is now finalizing
\nthree new production sharing contracts for oil and gas
\nexploration and production and another contract under technical
\nassistance agreements.<\/p>\n
He added that Pertamina is now processing bids from 15 new
\ncontractors for oil and gas exploration and production.<\/p>\n
Pertamina, which signed only four contracts last year, awarded
\nearly this year four technical assistance contracts as well as
\nanother huge deal with Esso Natuna Inc. of the U.S. for the
\nconstruction of a $35 billion gas liquefaction project in Natuna,
\nRiau.<\/p>\n
Refinery<\/p>\n
Bambang also told reporters after yesterday's ceremony that
\none of his subsidiaries, PT Asia Pacific Petroleum, also plans to
\nconstruct an oil refinery in Situbondo, East Java, with a
\nprocessing capacity of 210,000 barrels of oil per day.<\/p>\n
\"We expect to start the construction next year,\" he said.<\/p>\n
He said his company will cooperate with an Australian company
\nfor constructing the export-oriented refinery, which will process
\ncrude oil from Middle Eastern countries.<\/p>\n
\"We estimate the investment of the project will be Rp 3.5
\ntrillion,\" he added.<\/p>\n
The planned refinery is one of seven oil processing plants,
\nwhich were approved by the Investment Coordinating Board last
\nyear. (fhp)<\/p>",
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