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)