KL firm scraps RI oil plan

KL firm scraps RI oil plan

KUALA LUMPUR (Dow Jones): Malaysia's Tenggara Capital Bhd.
said Wednesday its unit won't proceed with plans to explore and
develop an oil and gas field in Indonesia.

In a statement to the Kuala Lumpur Stock Exchange, Tenggara
said, based on findings by two independent consultants, the
estimated recoverable reserves of oil and gas in the Karapan
Block, off Madura Island, don't appear attractive enough to
commit resources to the project.

Tenggara's unit TOB, Exploration Sdn. Bhd., had signed a
joint- operation agreement with Wirabuana Pan Resources Karapan
Ltd. in March to explore and develop the oil and gas field.