ConocoPhillips gives up oil area

ConocoPhillips gives up oil area

JAKARTA: ConocoPhillips, the third-largest U.S. oil company, and Amerada Hess Corp. are giving up their Indonesian offshore exploration areas after failing to discover oil and gas.

Amerada Hess will give up the Tanjung Aru block in Makassar Strait while ConocoPhillips will give up the Nila exploration block in the West Natuna Sea, Zanial Achmad, deputy of planning at state oil regulator BP Migas, said on Thursday.

"Neither of the contractors are interested in extending their licenses after failing to make any significant hydrocarbon discoveries," Zanial said.

Indonesia is trying to attract foreign investors to explore for and develop oil and gas reserves to replace aging fields that have caused the country's production to decrease.

The government may offer the areas to other investors, Zanial said. -- Bloomberg