Anadarko eyeing E&P venture with Pertamina

State oil and gas company PT. Pertamina said it was in talks with US oil company Anadarko Petroleum Corporation to form joint venture to develop Pertamina?s upstream assets in Southern part of Sumatra and East Java.

?Talks are continuing,? said Pertamina?s upstream director Hari Kustoro. He said that one of the main hurdles for the talks to be concluded is the status of Pertamina?s upstream assets. Under the new oil and gas law, Pertamina?s upstream assets will be treated similar to production sharing contract areas under the contract called cooperation contract.

He did not give detail of the form of joint venture both parties were looking to seal.

Hari said Japan?s E&P firm Japex had also expressed interest to team up with Pertamina to manage some of Pertamina?s upstream assets.

Pertamina?s E&P assets span all over Indonesia, but poorly exploited dur to Pertamina?s lack of exploration fund. Industry sources believe that Pertamina?s working areas has great exploration potential. (godang)