Kanematsu starts fourth RI well

Kanematsu starts fourth RI well

TOKYO (Reuter): Japanese trading house Kanematsu Corp has started drilling at its fourth wildcat well in Indonesia, a company spokesman said.

"We hope to have enough oil samples from the 11,000 square kilometer Berau block to analyze by the year-end," he said.

Kanematsu, Japan National Oil Corp (JNOC) and the Overseas Petroleum Corp together bought a 30 percent concession in the block from Atlantic Richfield Co in May.

Kanematsu paid 80 million yen, JNOC 20.8 million yen and Overseas Petroleum 20 million yen, the spokesman said.

Kanematsu has set up a joint venture called KG Berau Petroleum Ltd to handle the drilling project.

"If the finds from the block are promising, the Japanese partners may increase their share percentage," the spokesman added.

He said JNOC would take up to 50 percent share, Kanematsu 40 percent and Overseas Petroleum 10 percent.

Kanematsu is currently drilling in the Kaloshi, Babo and Wiriagar blocks in Indonesia. Up to now, the yields from the wildcat wells have not been very favorable, the spokesman said.