Iraqi parliament discusses Pertamina?s oil expansion plan

State owned oil company Pertamina will allocate an initial investment of about US$35 million to finance its oil exploration activities in the Western Desert, Iraq, the company?s president director Baihaki Hakim said.

Baihaki said that the exploration works would start soon after the Iraqi parliament approved the exploration plan. "The Iraqi parliament is discussing the exploration plan," he was quoted as saying by Bisnis Indonesia daily.

Pertamina?s oil exploration plan is part of the cooperation agreement signed by the Indonesian and Iraqi governments recently. Under the agreement, Pertamina is given a contract to explore oil in a Western Desert area covering about 10,000 sq meters.

Baihaki said that Pertamina?s initial investment of about $35 million in the project was still relatively small. "We will increase the investment if there is significant oil deposit found in the area," he added.

The oil exploration plan is part of Pertamina?s expansion plans in foreign countries. The company is also considering similar oil projects in Malaysia, Vietnam and the Middle East countries. The company?s investment in oil exploration activities in the country reached Rp 2.3 trillion during the first quarter of this year, while its oil production totaled about 98,000 barrels per day. (*)