Pertamina, Petroequador sign implementation agreement

State oil and gas firm PT Pertamina and Equador's state owned company Petroequador have signed a so-called "implementation agreement" on Monday to explore and develop three oil and gas blocks in Equador.

?The three blocks are Lago Agrio, Quanta and Dureno which all are producing. Lago Agrio block produces 10,000 barrels per day. I don't remember the output of the two other blocks, Quanta and Dureno,? Pertamina President Director Ari Soemarno said on Monday.

Folowing the signing of the agreement, Pertamina will study the data of blocks, which is expected to be completed in three months or around March 2008, Ari said.

Pertamina will invest an estimated US$50 million in the first year for the blocks.

Meanwhile, Petroecuador Executive President Carlos Pareja Yannuzzelli said the Equadorian government had given priority to Pertamina to increase production capacity from one producing block and to explore one offshore block.

He said the ownership percentage and value of investment for the blocks had yet to be decided, he said, the matters depend on the result of Pertamina's study.

Pertamina and Petroequador signed MoU on the agreement last year.

Pertamina has been increasing its overseas upstream portfolio in a bid to transform itself to become international EP player. The company also has exploration stakes in Iraq, Sudan, Qatar, Libya and Malaysia. (bernard)