Conoco interested in Makassar Strait blocks
Thursday, January 11 2001 - 06:00 AM WIB
Conoco Indonesia Inc., a subsidiary of American oil and gas firm Conoco Inc. expressed on Wednesday interest to take part in the development of the Makassar Strait blocks that the government said would be open for bidding first quarter this year.
The company's president Pat Meyer told Petromindo.com in an interview Conoco planned to acquire two or three out of the six blocks which would be offered in Makassar strait.
"We actually look to acquire a couple of blocks and right now we are doing technical analysis to see if we want to make an offer for them. We actually have not made a decision yet, but some time near the
deadline we will," he said.
The government has planned to auction six deep water oil prospects in Makassar Strait, East Kalimantan this year. Makassar Straits is currently the favorite area for oil and gas investors after Unocal Indonesia Company, a subsidiary of American energy firm Unocal Corp, found a significant oil and gas resources in the deep water of the area.
The six blocks are Taritip, which covers about 3,180 square kilometers, Jangeru (about 3,375 square kilometers, Tanjung Aru (about 3,460 square kilometers, Donggala (about 3,120 square kilometers), Popodi (about 3,460 square kilometers) and Papalang (about 3,050 square kilometers)
Meyer also said Conoco would not mind if Indonesian state oil and gas company Pertamina be given special privilege to partner with whomever would win the auction.
Pertamina, in its ambition to become world class oil and gas company, recently asked the government to be given special privilege to
partner with the winners of the auction and the government had given indication to grant its request.
"We do not have a problem with that. If the winner has a partner which is a government owned oil company, there will be some advantage in that. We can get better alignment with the government. It would be a strategic partner," he said.
Conoco currently produces some 50,000 barrels of oil per day from its oil and gas field in West Natuna Block B, which was a 25 percent increase from last year's output. (Alex)