JNOC invests in Irian Jaya

JNOC invests in Irian Jaya

TOKYO (Dow Jones): State-run Japan National Oil Corp. has decided to take a 50 percent stake by investing Y4.2 billion (US$40 million) in a Japanese oil and natural gas exploration project company at the onshore Semirak block in Irian Jaya, Indonesia, JNOC officials said Monday.

Irian Jaya Gas & Oil Co., the project company, was established by Japan Petroleum Exploration Co., or Japex, in 1998 when Japex was awarded a joint-operating, production-sharing agreement by Indonesia's state-owned oil company Pertamina for the exploration of the Semirak block.

The onshore block covers 2,757 square meters.

Japex now owns 25 percent of the company, Japan's Indonesia Petroleum Ltd. 12.5 percent, Mitsubishi Gas Chemical Co. 12.5 percent, and JNOC the remainder, the officials said.

The Japanese company has a 60 percent interest in the Semirak concession.

Irian Jaya Gas & Oil and Pertamina are set to conduct seismic drillings at two test wells during 2000 and 2001, the officials said.