Pertamina signs new oil contracts
Thursday, May 17 2001 - 04:30 AM WIB
The state-owned oil and gas company Pertamina signed on Thursday two new production-sharing contracts (PSCs) each with Chevron Kisaran Ltd. and Texaco Kisaran Inc for the Kisaran onshore block in North Sumatera, and with Coparex Banyumas BV for the Banyumas onshore block in Central Java.
Pertamina also singed a technical assistance contract (TAC) with Buana Sadpetra Sebasa Ltd. for the Mambang Sebasa oil field in Musirawas district, South Sumatera
Pertamina press statement said that the 30-year PSCs and the 20-year TAC were signed by Pertamina president Humayunbosha.
The statement said that under the contract, the investors must make investment in exploration and development activities during the first 10 years. The total investment committed for this activity reached around US$5.5 million.
Other terms in the contract include bonus for compensation on information amounting to $435,000, equipment and service assistance of $215,000, education assistance $165,000, and production bonus in accordance with production level.
All the bonuses and assistance were not considered as operation cost, the statement said.
The Kisaran onshore block is located in Labuhan Batu district, while the Banyumas block is located in four districts including Cilacap, Purwokerto, Banjarnegara, and Kebumen.
The statement said that the new contracts were expected to increase the country's oil production and provide greater assurance for domestic fuel supply.(godang)