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)