Nippon finds gas in Irian

Nippon finds gas in Irian

TOKYO (AFP): Nippon Oil Co. Ltd. said a group of Japanese and
U.S. firms has produced 100 million cubic feet (2.83 million
cubic meters) of natural gas a day from a test well in an
Indonesian mining area.

The discovery was made at an evaluation well in the Berau area
off Irian Jaya by Nippon Oil unit Nippon Oil Exploration (Berau)
Ltd. and another Japanese firm, KG Berau Petroleum, as well as
Atlantic Richfield Co. (ARCO) and Occidental Petroleum Corp. of
the United States.

The extent of gas deposits in the mining area is still unknown
and the group will continue feasibility study in the area for
possible commercialization, the leading Japanese oil distributor
said in a statement.

ARCO holds a 48 percent share in the rights and interests of
the Berau area, while Occidental Petroleum holds 23 percent, the
Nippon Oil unit 17 percent and KG Berau 12 percent.

The 11,200 square kilometer (4,480 square feet) Berau area is
located near the Wirigafar Deep mining area's No. 2 well held by
ARCO, where natural gas was found in 1994, Nippon Oil said.