Unocal finds Indonesian oil

Unocal finds Indonesian oil

EL SEGUNDO, Calif., (Reuter): Unocal Corp announced Monday that one of its exploratory wells offshore Indonesia hit significant amounts of natural gas and oil.

The well, drilled in deep waters of the Makassar Straight, tested at a rate of 24.8 million cubic feet of gas and 860 barrels of condensate per day.

The discovery earns Unocal a 50-percent working interest in the Strait, which is part of a larger Unocal exploration program in Indonesia. Mobil Makassar will hold the remaining working interest.

Unocal announced last year a deal with Mobil Makassar to acquire an interest and assume operations of the area, which is adjacent to Unocal's East Kalimantan field.

"These discoveries demonstrate there is significant hydrocarbon potential in this deep water area offshore East Kalimantan," said Timothy Lauer, president and managing director of Unocal Indonesia.

Unocal and Mobil Makassar plan more seismic surveys, drilling, and testing to evaluate the region's potential.