Gulf celebrates 40 years in Indonesia
Thursday, February 15 2001 - 04:30 AM WIB
Canadian oil and gas company subsidiary Gulf Indonesia yesterday marked its 40 years of operation in Indonesia with a celebration.
In 1961, the company concluded one of the two PSC with PN Permina (the then Indonesia state oil and gas company) that covered onshore area called Block A located in North Sumatra. The company still holds and operates Block A with 50 percent interest.
The company then continued its expansion in South Sumatra area by entering into a Technical Assistance Contract (TAC) in 1968. Today, as operator, the company holds 60 percent interest.
In late 1983, the company signed a PSC for the Corridor Block in South Sumatra. The company holds a 54 percent interest and also operates the block. The Corridor Block PSC has become major asset to the company by contributing more than half of the company's revenue from selling oil and natural gas into domestic and international markets.
During 1990's the company signed several new contracts with Pertamina. Onshore of the island of Sumatra, the company acquired interest in the Jambi EOR, South Jambi B (45 percent), Tungkal (100 percent) and Calik (60 percents) blocks. The company is the operator of all these blocks.
From the offshore side, the company acquired interests in the Kakap (31.25 percent), West Natuna Block I (30 percent), Pangkah (12 percent), Sebuku (100 percent) and Ketapang (50 percent) blocks. The company operates all of these blocks except for Northwest Natuna Block I and Pangkah.
Gulf Indonesia produced 17 million barrels of oil equivalent in 2000: 60 percent from the Corridor gas project, 31 percent from onshore oil operations and on the island of Sumatra and the balance from the offshore West Natuna properties. With the completion of the West Natuna Gas Projcet in late 2000, the company began its first offshore natural gas sales in 2001.
Gulf Indonesia is a party to substantial long-tem US dollar gas sales contracts that are priced based on oil price benchmark. Using December 2000 average prices to estimate future prices, these contracts have a gross value of US$26 billion, of which US$ 7 billion represents the company's working interest share of the estimated combined gross revenue for the contracts over the next 23 years.
Gulf Indonesia has traded publicly on the New York Stock Exchange since 1997 and has approximately 88 million common shares outstanding. The company is a 72 percent subsidiary of Gulf Canada Resources Limited. (*)