Pertamina signs four oil production sharing deals
Pertamina signs four oil production sharing deals
JAKARTA (JP): State-owned oil company Pertamina awarded on
Monday four contracts for the exploration and development of
Indonesian oil and gas resources, the first oil mining deals
signed this year.
Pertamina's president Martiono Hadiyanto said that the
production sharing contracts, lasting for 30 years, were awarded
to Apex (Yapen) Ltd. of Japan, PT Petromer Bengara Energi of the
United States, Lasmo Krueng Mane Ltd. of Britain and Ambalat
Shell BV. of the Netherlands, for a total area of 22,274 square
kilometers.
The companies are committed to investing around US$96 million
for exploration in the first 10 years, he said.
"These contracts will hopefully send a clear signal to the
international community that Indonesia still remains attractive
for investment, especially in the oil and gas sector," Minister
of Mines and Energy Kuntoro Mangkusubroto said in his speech at
the signing of the contracts.
Under the production sharing contracts, the government will
receive 85 percent of the oil production or 75 percent of gas
production.
Apex will explore oil in the Yapen offshore block, Irian Jaya,
with a total investment of $18 million in exploration.
The Bengara offshore block, Irian Jaya, was awarded to
Petromer with a committed investment of $22.4 million.
Lasmo, which will spend $39.1 million, was awarded the Krueng
Mane offshore block in North Sumatra and Shell won the Ambalat
offshore block in East Kalimantan, with a planned investment of
$16.5 million.
The contractors will also pay information bonuses to Pertamina
amounting to between $125,000 and $300,000 for each block within
30 days after the signing of the contracts.
Pertamina will also receive $375,000 in fees for services and
equipment from the four contractors.
In 1998, the government awarded 22 oil and gas contracts, down
from 29 in 1997.
Martiono said the signing of the new contracts indicated that
international companies remained confident in the Indonesian oil
and gas sector.
"Investors believe that the Indonesian government always
honors its commitments," Kuntoro said. (02)