Chevron quits N. Sumatra exploration block

PT. Chevron Pacific Indonesia (CPI), a unit of US oil, gas major Chevron Corp. confirmed on Friday that it has relinquished ownership of its 50 percent interest in onshore Kisaran exploration block in North Sumatra with effect from 1st October 2007.

Chevron?s 50 percent partner in the block Pacific Oil & Gas who has been in a joint operation agreement with Chevron, will take over ownership and will be appointing a new operator pursuant to the Joint Operating Agreement, the company said in a statement.

For the six years of PSC contract, CPI has fully evaluated this block by conducting acquisition and processing of 351 square kilometers of 3 D seismic & 112 kilometers of 2 D seismic, geological study and drilling one exploratory well, Parit Minyak #1. The well was considered non-commercial discovery. Based on our evaluation, the area has some upside exploration potential in the block. However, this potential is currently seen as below Chevron's economic hurdle for new block opportunity, the company said.

The company did not reveal the interest relinquishment value.(godang)