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.