JNOC quits Papua exploration block

The state-run Japan National Oil Corp. aanounced on Tuesday that one of its subsidiaries, Irian Jaya Gas and Oil Company, Inc., had withdrawn from an oil exploration project in Semirak block onshore Papua.

Irian Jaya Gas and Oil Co ended the project because it could find no commercially viable reserves. The subsidiary, owned 50 percent by JNOC, had drilled two exploratory wells between 2001 and 2002

In 1998, Irian Jaya Gas and Oil obtained 60 percent participating interest in Semirak block. The remaining 40 percent was held by state oil and gas company Pertamina.

Earlier in September, JNOC also announced its other Indonesian exploration subsidiary Japex North Sumatra Ltd. had withdrawn from oil and gas production project in Gebang block in North Sumatra. Japex North Sumatra Ltd had 50 percent interest in the project. JNOC terminated its operation by farming out its interest and reach an agreement with an Indonesian company, Costa International Group Ltd. (alex)