Pertamina to resume Iraq venture

Pertamina to resume Iraq venture

The Jakarta Post, Jakarta

State-owned oil and gas firm PT Pertamina hopes for an
immediate resumption of its Iraq oil exploration project,
following last month's historic handover of sovereignty to the
new Iraqi government.

Pertamina upstream director Bambang Nugroho was quoted by
detik.com as saying the company hoped to receive official
confirmation on its contract status for exploring Western Desert
Block III in Iraq.

"The Iraqi oil minister has given a positive sign in regards
Pertamina's proposal. We are a potential partner in the project,"
Bambang said on Thursday.

Pertamina won the contract in 2002 from the former government
under Saddam Hussein. However, concerns arose that the new
government might suspend the contract, as similar contracts with
Russia and China have reportedly been put on hold.

Bambang said the Iraqi government had also indicated that
Pertamina could receive new projects to develop oil fields with
an output of 100,000 barrels a day.

Pertamina started oil exploration last year in Western Desert
Block III, which is on the Iraq-Saudi Arabia border and has an
estimated 3 million barrels in reserves.

The firm plans to invest about US$24 million in the block for
the first three years, and another $16 million over the following
two years.

Pertamina put its Iraq project on hold when the U.S.-led
coalition invaded Iraq in March 2003. The company resumed a
seismic survey early this year, but pulled out their team in
April when security began deteriorating.

The company said earlier the block might start production in
seven years if the project went well.

Bambang did not give any details as to whether the Pertamina
team had been sent back to Iraq.