Pertamina ready to develop Karana block

State owned oil and gas company Pertamina said that it would cooperate with foreign oil companies in developing the deep-water Karana block in Makassar Strait, one of 21 oil and gas block tendered by the government through a direct offer.

Pertamina's director for upstream operation, Sukusen Soemarinda, said in Jakarta on Tuesday that a number of foreign companies including Shell and a Norwegian oil firm had expressed their interest to take part in the development of the block.

"We have almost reached an agreement with the Norwegian company," he said to the reporters, without naming the company.

He said that Pertamina needed to cooperate with foreign companies to provide financial assistance and technology support for the high-cost development of the Karana deep-water block.

Karana is one of 21 oil and gas blocks tendered by the government through a direct offer last month. The government is currently assessing bids from tender participants and is scheduled to announce the winners 45 days after the deadline for submitting document that officially closed on Oct. 11. (godang)