Japex to start RI project by year end<\/p>\n
TOKYO (Dow Jones): Japan Petroleum Exploration Co. plans to
\ncommence the first exploration drilling at Indonesia' Semirak
\nbloc, onshore Irian Jaya, by the end of 1998, Japex officials
\nsaid yesterday.<\/p>\n
Japex was awarded a production-sharing contract for the bloc
\nby the state-run Pertamina, Thursday.<\/p>\n
After a feasibility study on the Semirak block which ran from
\nNovember 1996 to April 1997, Pertamina and Japex signed a joint-
\noperating production-sharing agreement. Japex holds a 60 percent
\nstake in the concession while Pertamina takes the remainder, they
\nsaid.<\/p>\n
The 30-year production-sharing contract includes an
\nexploration period of 10 years.<\/p>\n
Under the accord, Japex will conduct one seismic drilling and
\ntwo test exploration drillings over the next three years at an
\nestimated cost of US$35 million, the officials said.<\/p>\n
The onshore Semirak block covers 2,757 square meters.<\/p>\n
"The Semirak block is promising as it's located adjacent to
\nWiriagar, Berau blocks where Atlantic Richfield Co. (ARC) and
\nJapan's Kanematsu Corp. have been successfully developing," a
\nJapex official said.<\/p>\n
"We plan to sell possible gas output (from Semirak block) in
\nthe form of liquefied natural gas to Japan."<\/p>\n
The initial exploration cost of $35 million for the first
\nthree years will be financed entirely by Japex, with loans and
\ninvestment from Japan National Oil Corp, the officials said.<\/p>\n
Japex separately is required to pay a US$1.8 million bonus for
\nthe concession to Pertamina within one month.<\/p>\n
Japex established by the end of March its wholly-owned project
\ncompany, Irian Jaya Gas and Oil Co. capitalized at Y400 million.
\nJapex plans to invite foreign and domestic partners to
\nparticipate in its Semirak project, the officials noted.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japex-to-start-ri-project-by-year-end-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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