BP to relinquish E. Java exploration block

Anglo-American oil giant BP Plc is planning to relinquish Bawean-1 exploration block offshore East Java after failing to discover hydrocarbon at the economic size in the area, a company official said.

BP Indonesia president Bill Schrader told Petromindo.Com that the company is in the process of giving the area back to the government.

BP, the block?s operator has 55 percent working interest while Australian oil firm Santos Limited has the remaining 45 percent. The partnership drilled two wells in the block in 2003, but only managed to discover gas contained 75-80 percent of carbon dioxide, making them uneconomic to be exploited. (alex)