China Petrotech in technical services deal with Pertamina

Singapore Exchange Main Board-listed firm China Petrotech Holdings Limited announced on Tuesday that its wholly-owned subsidiary, Petroservice Engineering Inc. (PEI), has signed a new MOU with PT Pertamina EP to provide technical oilfield services at the latter?s production oil fields.

Under the MOU, PEI will deploy its technical staff to conduct the first trial program at one of Pertamina?s working area, the Pendopo Area, in South Sumatra. In the trial program, PEI will conduct ZW-PQP Combined Water Profile and Shut Off, and Oil Displacement Technique for suspended High Water Cut Wells at Pertamina?s 3 to 10 production wells.

The objective is to accelerate and optimize incremental oil production at the production wells. If this trial project shows results of positive incremental oil recovery, Pertamina and PEI will then sign further agreement whereby PEI will provide technical oilfield services at Pertamina?s selected oil blocks that are in production.

The MOU covers a six months period.

China Petrotech has two other ongoing projects in Indonesia. In May 2007, the company signed a joint study agreement with Pertamina to explore various Enhanced Oil Recovery technologies to optimise production at Pertamina?s matured oil fields, Tapian Timur and Dahor Blocks at South Kalimantan.

Separately, the company also owns 42% stake in PT Kamundan Energy, a joint venture that has secured a KSO with 20-years exploration and production rights at a 1,582km2 gas field in Kamundan, Papua. (alex)