Govt awards East Ambalat block to Unocal

The government has decided to give the rights to survey, explore and develop oil and gas resources in East Ambalat block offshore East Kalimantan to US-based firm Unocal Corporation.

?We have sent a Letter of Intents regarding the East Ambalat block to the company (Unocal),? director general of oil and gas at Ministry of Energy and Mineral Resources Iin Arifin Takhyan told reporters Monday.

Meanwhile, the directorate general?s director for exploration and production director Novian Thaib said that Unocal had agreed to spend around US$1.5 million for exploration program at block.

Novian added that the government will also receive signature bonus of $100,000 for the block.

East Ambalat is one of 11 new blocks, which were tendered to investors in the last round. The block?s territory is currently in a dispute with Malaysian government.

The country's state-owned Petroliam Nasional Bhd., or Petronas, earlier said the area falls within the ND6 and ND7 blocks it offered a few months ago. (godang)