Pertamina awards contracts to nine private companies
Pertamina awards contracts to nine private companies
JAKARTA (JP): State-owned oil company Pertamina signed
yesterday seven production-sharing contracts for oil and gas
exploration and production, and two technical assistance
contracts with private foreign and local companies.
The seven new production-sharing contracts were awarded to
Unocal Sesulu Ltd., Canadian Petroleum Manna Ltd., Total East
Natuna, Gulf Resources Ltd., Premier Oil Ltd. and Seafield
Resources LLC., Saba Petroleum Co. and PT Telaga Binjai Energi.
Under the contracts, the companies are to explore and develop
the oil and gas reserves for 30 years.
The Minister of Mines and Energy, I.B. Sudjana, said yesterday
the signing of the new contracts showed that many investors were
still interested in exploring oil in the country.
"Contrary to reports that investors have lost confidence in
Indonesia, they are still showing a lot of interest in investing
here," he said.
Unocal will explore a 2,797 square kilometer offshore block in
East Kalimantan, Canadian Petroleum a 11,115 square kilometer
offshore and onshore block in Manna (Bengkulu) and Total East
Natuna a 10,260 square kilometer offshore block in North Sokang
(Riau).
Sebuku
Gulf Resources will explore an offshore block in Sebuku in
Makassar Gulf, Premier Oil and Seafield an offshore block in the
West Natuna Sea and Indonesia's Telaga Binjai an onshore block in
Binjai (North Sumatra).
Pertamina also agreed yesterday to operate a 6,734 square
meter onshore block in Jatiluhur, West Java, under a Joint
Operation Arrangement with Saba Petroleum.
Saba will finance the exploration and development of the
reserve and invest at least US$60.5 million in the exploration
activities for the first 10 years.
The seven new contractors are required to spend at least
$264.90 million on exploration during the first 10 years.
They are also required to pay $4.22 million compensation to
Pertamina for information, $1.05 million for equipment and
services, $900,000 for education and additional production in the
future.
The 20-year two technical-assistance contracts were awarded to
Energy Equity Pty. Ltd. to operate Pertamina's Lapangan Biru and
Talang Babat oil fields both in West Sumatra.
Sudjana said the contracts were signed when the oil price in
the international market was relatively lower than earlier this
year.
"As a member of the Organization of Petroleum Exporting
Countries (OPEC) we support its decision to control the
production of each member as according to the quota agreement,"
he said.
But he urged OPEC to raise the ceiling price of their crude
from $18 per barrel at present.
In May, this year, Pertamina signed eight production-sharing
contracts and four technical assistance deals. (das)