Pertamina signs four oil production sharing deals<\/p>\n
JAKARTA (JP): State-owned oil company Pertamina awarded on
\nMonday four contracts for the exploration and development of
\nIndonesian oil and gas resources, the first oil mining deals
\nsigned this year.<\/p>\n
Pertamina's president Martiono Hadiyanto said that the
\nproduction sharing contracts, lasting for 30 years, were awarded
\nto Apex (Yapen) Ltd. of Japan, PT Petromer Bengara Energi of the
\nUnited States, Lasmo Krueng Mane Ltd. of Britain and Ambalat
\nShell BV. of the Netherlands, for a total area of 22,274 square
\nkilometers.<\/p>\n
The companies are committed to investing around US$96 million
\nfor exploration in the first 10 years, he said.<\/p>\n
\"These contracts will hopefully send a clear signal to the
\ninternational community that Indonesia still remains attractive
\nfor investment, especially in the oil and gas sector,\" Minister
\nof Mines and Energy Kuntoro Mangkusubroto said in his speech at
\nthe signing of the contracts.<\/p>\n
Under the production sharing contracts, the government will
\nreceive 85 percent of the oil production or 75 percent of gas
\nproduction.<\/p>\n
Apex will explore oil in the Yapen offshore block, Irian Jaya,
\nwith a total investment of $18 million in exploration.<\/p>\n
The Bengara offshore block, Irian Jaya, was awarded to
\nPetromer with a committed investment of $22.4 million.<\/p>\n
Lasmo, which will spend $39.1 million, was awarded the Krueng
\nMane offshore block in North Sumatra and Shell won the Ambalat
\noffshore block in East Kalimantan, with a planned investment of
\n$16.5 million.<\/p>\n
The contractors will also pay information bonuses to Pertamina
\namounting to between $125,000 and $300,000 for each block within
\n30 days after the signing of the contracts.<\/p>\n
Pertamina will also receive $375,000 in fees for services and
\nequipment from the four contractors.<\/p>\n
In 1998, the government awarded 22 oil and gas contracts, down
\nfrom 29 in 1997.<\/p>\n
Martiono said the signing of the new contracts indicated that
\ninternational companies remained confident in the Indonesian oil
\nand gas sector.<\/p>\n
\"Investors believe that the Indonesian government always
\nhonors its commitments,\" Kuntoro said. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-signs-four-oil-production-sharing-deals-1447893297",
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