KNOC quits Indonesia exploration blocks

Korea National Oil Corporation (KNOC) is quitting its Indonesian exploration portfolio due to failure to make commercial oil discovery.

The company?s website said that the company is in the process of terminating contract of North East Madura I (NEM I), North East Madura II (NEM II) blocks, both are located offshore East Java and Wokam block onshore and offshore West Papua. KNOC is the operator of the three blocks.

KNOC has 50 percent interest in NEM I block, which was awarded in 2003. The company drilled two dry holes in the block in 2005 and 2006.

The company has 56.25 percent interest in NEM II, which was also awarded in 2003 and drilled one dry hole in 2006.

It has 80 percent interest in Wokam block, which was awarded in 1997 and managed to strike gas discovery through the drilling of Bumerah-1 well in 2006.The well was then plugged and abandoned.

With the termination, KNOC?s remaining upstream asset will be 8.91 percent non-operating interest in South East Sumatra producing block, which is operated by CNOOC. (alex)