Citic Resources, KUFPEC in Indonesian joint exploration pact

Citic Resources Holdings Ltd, a Chinese energy and base metal producer listed at the Hong Kong Stock Exchange, and Kuwait Foreign Petroleum Exploration Co. (KUFPEC) have signed a memorandum of understanding (MoU) to jointly search for hydrocarbon reserves in Indonesia and elsewhere.

 

The MoU signed on Monday was non-binding in nature, both firms said in a joint statement.

 

In July 2006, Citic agreed to buy a 51 percent interest in Seram (Non-Bula) block from KUFPEC for $97.4 million. It was Citic's first overseas investment in upstream sector.

 

The block has Oseil field, which produced 4,145 barrels of oil a day in the first six months of 2007. The field has proven reserves of 7.05 million barrels of heavy crude. (*)