Talisman signs RI contract

Talisman signs RI contract

CALGARY (Reuters): Canada's Talisman Energy Inc said on Monday it signed a production sharing contract with Indonesia covering that country's Madura offshore block, an area it said was on trend with several oil and gas discoveries.

The Madura Offshore Block PSC, located southeast of Madura Island in the East Java Sea, comprises 4,246 square km of exploration acreage in a proven hydrocarbon basin, said Talisman, which has 100 percent interest in the block. Water depths are 70- 130 meters.

"We have no hesitation about increasing our portfolio in Indonesia because sales are denominated in U.S. dollars and the fiscal regime for the oil and gas industry has been very stable over many years," Talisman Chief Executive Jim Buckee said in a statement.

The company said it had extensive seismic data on the block and expected to reprocess and reinterpret it, which would lead to more additional exploration potential.