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.