CanOxy enters Indonesia

CanOxy enters Indonesia

CALGARY (Reuter): Canadian Occidental Petroleum Ltd has signed a new production sharing contract in Indonesia, covering operations on the 11,100 square km Manna Block.

The block included onshore and offshore acreage in southwest Sumatra, adjacent to CanOxy's interest in the Merangin Block, the company said Thursday.

CanOxy said the block covers a lightly explored area of Sumatra which is close to producing basins in the south. Preliminary mapping identified leads that were similar to producing fields in the South Sumatra basins, it said.

Water depths over the offshore region are generally less than 100 metres, the company said.

Under the agreement, CanOxy unit Canadian Petroleum Manna holds a 100 percent working interest in the block, but Indonesia state oil company Pertamina retains an option to acquire up to a 10 percent stake if a commercial discovery is made, it said.