PT Exspan questioned over technology rights

PT Exspan questioned over technology rights

JAKARTA (JP): Oil service company PT Wahana Petranusa
questioned on Monday PT Exspan Petrogas Internusa, a unit of oil
and gas company PT Medco Energy Corporation, over its rights to
use a patented enhanced oil recovery technology.

Wahana's president Indrayana S. Somaatmadja said in a
statement that Wahana holds the rights to market the technology
in Indonesia and it had not made any deals with Exspan Petrogas
for their utilization of the technology.

The technology in question is the so-called Vibro Seismic
Impact Technology (VSIT), which was developed by All-Russian
Scientific-Research Institute of Natural Gases and Gas
Technologies (VNIIGAZ).

VSIT enables oil companies to pump oil wells containing
viscous oil and oil that adheres tightly to rocks. The technology
is reportedly able to increase the output of old oil wells by 40
percent.

Medco earlier announced it had signed an agreement to set up a
consortium with PT Sarana Chaliutama, owned by Chandra Alim, to
employ the technology in the oil fields of PT Exspan Kalimantan,
Medco's subsidiary, in East Kalimantan.

The consortium would also explore the possibilities of
employing the technology in other oil fields across the country,
Medco said in a statement.

Somaatmadja said VSIT was introduced into Indonesia by Wahana,
which has been registered at the Ministry of Trade and Industry
as the agent of VSIT for the period of between Sept. 25, 1999 and
March 5, 2001.

He said Wahana, in a joint venture with PT Putra Petra Utama,
also owned by Chandra Alim, had signed a contract with PT Caltex
Pacific Indonesia on March 26, 1999, to apply VSIT in the
company's oil fields in Riau.

Wahana would also sign agreements with state oil and gas
company Pertamina to apply the technology in all Pertamina's oil
fields, Somaatmadja said.

"In this connection, ...the cooperation between Exspan
Petrogas Intranusa and Sarana Chaliutama is questionable and we
shall investigate this," Somaatmadja said.

However, Medco's chief executive office (CEO) Hilmi Panigoro
denied that Wahana had an exclusive right to market and apply the
technology in Indonesia.

"The company has only an exclusive right to apply the
technology to Caltex's oil fields," Hilmi told The Jakarta Post.

The consortium formed by Exspan Petrogas and Sarana Chaliutama
was licensed by VSIT patent holder VNIIGAS to use the technology
in Exspan Kalimantan's oil fields.

"If anything, VNIIGAZ has 20 percent shares in the consortium
with the remaining 80 percent shares equally owned by Exspan
Petrogas and Sarana Chaliutama," Hilmi said. (jsk)