Pertamina, LukOil to sign LoI

PT Pertamina EP, the upstream unit of state oil and gas firm PT Pertamina, will sign a letter of intent (LoI) with Russia's energy company LukOil  for a joint study in East Kalimantan, Papua and Timor Sea during the incoming visit of Russian President Vladimir Putin to on Sept. 6.

“Pertamina and LukOil would try to form operation cooperation (KSO) in Bunyu Island , East Kalimantan and Papua but it will depend on geological & geophysical (G&G) study result,” Pertamina EP President Tri Siwindono said on Monday.

In Timor Sea , Pertamina and LukOil are also in serious talks on the possiblity to cooperate in a study on Sewu Block. “If Directorate General of Oil and Gas at the Energy and Mineral Resources Ministry declares the block is open acreage, we will carry out the joint study,” he said.

The block is part of Indonesian territory, he added.

In April 2007, LukOil and Pertamina signed a memorandum of understanding in Rusia for cooperation in exploration and development of oil and gas fields in Rusia, Indonesia and other countries. The two companies also agreed to cooperate in enhancing the oil recovery of Indonesian fields. (godang)