Gulf to invest US$300m

Gulf to invest US$300m

JAKARTA (Dow Jones): Gulf Indonesia Resources Ltd. (GRL), an
oil and gas company, will invest $300 million in Indonesia this
year, its president Bill Fanagan said Wednesday.

"We are still very committed in Indonesia and very happy to
stay here," Fanagan told Dow Jones Newswires. "We will spend $300
million a year over the next three or four years."

The company is currently drilling new oil wells in East Java
and South Sumatra, Fanagan said. The $300 million investment this
year will be used to partly finance the drilling.

Fanagan added the company hasn't lost any production because
of social unrest in the country, although it occasionally faced
protests by the local community. For instance, local people
blocked the road to the company's site in Sumatra a few years ago
over land disputes.

The unit of Gulf Canada Resources Ltd. (GOU) currently
operates 13 oil and gas blocks in the country. It is one of four
companies in the $1.5 billion West Natuna Gas consortium, which
has been selling 325 million cubic feet of natural gas a day to
Singapore for 22 years.