Jambi offers cooperation with Petronas and BP

The provincial administration of Jambi has invited Malaysian oil company Petronas and Beyond Petroleum to cooperate in the exploration and production of oil and gas in the East Tanjung Jabung in the province.

Jambi governor Zulkifli Nurdin said in Jakarta on Thursday that the two giant oil companies had been approached to cooperate in the oil and gas exploration in the Jabung oil block with the local government through a joint venture that will be formed by the Jambi government and state owned company Pertamina.

Zulkifli said that the joint venture would, in the first stage, acquire 30 percent of the oil interest in the Jabung block from Devon of the United States, one of four operators of the oil block, which began production four years ago. The other three operators; Amerada Hess, which owns 30 percent stake, Carl Mc Gee (30 percent) and Pertamina (10 percent).

He said that Devon had offered to sell its 30 percent stake in the oil block for US$ 600 million. " As the price of the share is very expensive for Jambi, the joint venture that will be established with Pertamina, would seek financing from foreign investors such as Petronas and BP," he said.

According to him, the two companies have expressed their keen interest to take part in the exploration and production at the oil block, which is estimated to have producing capacity of 23,000 barrels per day. (*)