Five investors apply for oil and gas contracts

Five local and foreign oil and gas companies have applied for contracts to develop the country's oil and gas resources, state oil and gas company Pertamina said on Tuesday.

Pertamina's spokesman Toto Suparto told Petromindo.Com that Pertamina's negotiating team was in talks with the investors on the terms of the contracts.

"The contracts, which include production sharing contract (PSC) and technical assistance contract (TAC) are now in the negotiation stage," Toto said, adding that Pertamina expected to complete the negotiation in the near future.

He said the investors include local company PT Medco Energy which applied for a contract area in central and southern part of Sumatra, and a Canadian-American joint venture which wanted to develop an oil and gas block off the coast of East Kalimantan.

Under the existing regulation, after the negotiations are completed, the contracts would be sent to the President through Minister of Mines and Energy for approval. Aver being approved, the contracts will be subsequently signed by Pertamina and the contractors.

On Monday, Pertamina signed contracts, including three PSCs and four TACs -- with seven local and international investors to develop oil and gas resources in Maluku, Sulawesi, South Sumatra and West Java. They are the first contracts to be awarded by the state companies this year. (*)