JNOC to finance INPEX?s exploration venture offshore E. Kalimantan

Japan National Oil Corporation (JNOC) said Monday that it would finance INPEX Corporation?s exploration project at Donggala production sharing contract (PSC) in the Makassar Strait offshore East Kalimantan.

JNOC said that it was expected to provide ?2.7 billion (US$ = ?119.75) as a capital of Japanese firm INPEX?s subsidiary, Inpex North Makassar Ltd.

Donggala PSC area is located about 240 kilometers northeast of Balikpapan and more than 1,800 meters in water depth. The block is operated by Indonesian unit of French energy giant TotalFinaElf E&P Indonesie with a 32.725 percent working interest, while its joint venture partners, INPEX, Unocal Corporation of the U.S., and state-owned oil and gas company Pertamina hold 32.725 percent, 19.55 percent, and 15 percent interests, respectively.

According to JNOC, the joint venture planned to conduct exploratory activities including three exploratory wells in 2003.

?INPEX has been participating in various projects in Indonesia where its principal assets exist. This is an exploration project in the acreage located near to its main business areas of Attaka Unit and Offshore Mahakam Block. With its success, it will contribute to maintaining and augmenting the INPEX?s reserves in East Kalimantan Region,? JNOC said in a statement.

INPEX is a 50 percent owned by JNOC. (robert)