New oil deals to be signed by Pertamina
New oil deals to be signed by Pertamina
JAKARTA (JP): After a two-year suspension, the state oil
company Pertamina is scheduled today to sign an agreement on the
construction of a US$35-billion gas liquefaction project in
Natuna and to sign eight oil production sharing contracts.
Pertamina's president Faisal Abda'oe said recently that the
agreement on the Natuna project, which was initialed by Pertamina
and its contractor Esso Natuna Inc., an affiliate of Exxon Corp.
of the United States, on. Nov. 16, will be subject to Indonesia's
new tax laws, which were effected on Jan. 1.
He said both parties have agreed to hold a 50-percent stake
each in the project.
The planned Natuna project, billed to be the largest
concentration of gas producing facilities in the world, is
expected to be capable of producing up to 35 million tons of
liquefied natural gas per year for over 20 years. The project
will be located some 1,100 kilometers north of Jakarta and 600
kilometers northeast of Singapore.
Contracts
In addition to the agreement on the Natuna project, Pertamina
is also to award four contracts for oil and gas exploration and
production and four others for technical assistance today.
The first four contracts will be awarded to Santa Fe Resources
Ltd. of the United States for operation at Bangko Bloc, a 3,846-
square-kilometer area in Jambi, PT Citraduta Samudra of Indonesia
at Sepanjang Bloc, a 6,670-square-kilometer area offshore East
Java, Union Texas Corp. of the United States and Total Barakan
Ltd. of France at Barakan Bloc, a 400-square-kilometer field
offshore Southeast Maluku, and Bow Valley (Cenako) Ltd. of Canada
at a 650-square-kilometer area in Cenako, Riau.
Under the planned contracts, Santa Fe plans to invest $27.9
million, Citraduta $23.50 million and Union Texas with Total
Barakan $12.87 million during the first 10 years of exploration
in their appointed areas, while Bow Valley plans to invest $2.80
million during the first six years of exploration.
The technical assistance contracts will go to PT Mayumi
Megakerta Sasana of Indonesia, which will operate Pertamina's old
oil fields with an enhanced recovery method in Sungai Gelam in
Jambi, PT Siddhakarya Pilona Sabaku in Sabaku and Salawati of
Irian Jaya, PT Siddhakarya Pilona Salawati in Salawati of Irian
Jaya and PT Mayumi Megakerta Sasana in Ramok and Senabing of
South Sumatra.
The technical assistance contracts will allow Mayumi to invest
$5.1 million at Sungai Gelam and $30.92 million at Ramok and
Senabing, Siddhakarya Pilona Sabaku $8.21 million and Siddhakarya
Pilona Salawati $8.23 million during the first six years of their
operations.(fhp)