Exxon fails to find commercial hydrocarbon in Makassar Straits drilling

US oil giant Exxon Mobil Corp. may fail to find commercial hydrocarbon in its second deepwater drilling campaign at Makassar Straits, an official with upstream oil and gas authority BPMIGAS said on Monday.

Chairman R. Priyono said the drilling of Sultan exploration well in Mandar PSC failed to find hydrocarbon of commercial size.

BPMIGAS Exploration Division Head Anditya MT Ibrahim told Petromindo.Com that tests are currently underway at Sultan, but thus far, gas discovered was considered inadequate to be considered as commercial discovery.

Earlier, Exxon had drilled dry hole at Rangkong well in Surumana PSC which is adjacent to Mandar PSC.

ExxonMobil Oil Indonesia (EMOI) VP External Relations Maman Budiman said in February 2009 that the company will drill three wells in Surumana and another three in Mandar.

EMOI has 80 percent interest in both blocks with Malaysian firm Petronas holding the balance.(bernard)