Pertamina to sign deal

JAKARTA (JP): State-owned oil company Pertamina will soon sign a new technical assistance contract with a foreign company for oil and gas exploration and production.

"This will be the 14th production sharing contract this year," Zuhdi Pane, Pertamina's chief of foreign contractors coordination, told reporters here on Friday.

He declined to mention the name of the company.

He said that negotiations on seven other production sharing contracts had been completed and 10 other contracts were under negotiation.

Pertamina has signed 13 contracts so far this year.

He added that the company is now offering 13 areas, including three in eastern Indonesia, to oil contractors for exploration.

"We are optimistic that our target of signing 15 new contracts this year will be achieved," he said.

Zuhdi said that the target of oil and gas investment this year amounts to about US$3.7 billion, of which $639 million is allocated for 128 new exploration wells.

He said that the target is higher than last year's investment of $3.37 billion, but is lower than the $3.8 billion invested in 1993.

He mentioned three companies -- Caltex, Arco and Mobil Oil -- as the biggest investors in oil and gas projects. (04)