Petronas pays $ 170m for Kerr-McGee unit

Petronas pays $ 170m for Kerr-McGee unit

Agence France-Presse, Kuala Lumpur

Malaysia's national oil company Petronas said Friday it has
acquired Kerr-McGee Corp's Indonesian oil and gas unit for US$170
million.

The acquisition marked "a significant extension of Petronas's
activities in Indonesia, providing it with its first oil
production in the country," Petronas said in a statement.

"It also provides Petronas the opportunity to play a more
active role in the supply of gas to the growing markets within
Indonesia and the ASEAN (Association of Southeast Asian Nations)
region."

Kerr-McGee Indonesia Ltd. (KMI) is a subsidiary of Kerr-McGee
Corp, an energy and inorganic chemical company based in Oklahoma
city and listed on the New York Stock Exchange.

KMI holds a 30 percent interest in oil and gas fields in
Jabung block, south Sumatra, with five fields producing some
24,000 barrels of oil per day, Petronas said.

The Jabung block has a gas sales agreement to supply gas to
Singapore beginning from the third quarter of 2003 at an initial
rate of 68 million standard cubic feet per day (mmscfd) with a
plateau rate of 135 mmscfd by 2009, it added.

Petronas' other interests in Indonesia are Ketapang block and
Karapan block offshore of East Java and Tanjung Aru block
offshore of Kalimantan.