Pertamina, Tately to jointly operate Palmerah block

State owned oil and gas company PT Pertamina will cooperate with Malaysian oil company Tately NV to develop and operate the Palmerah oil block in Jambi under a profit sharing contract, Bisnis Indonesia reported on Tuesday.

Pertamina’s president Ariffi Nawawi said in Jakarta late last week that the two companies would each receive 50 percent from the production of the Palmerah oil block. “We hope the cooperation could be signed soon,” he said.

Pertamina’s director for upstream operation, Bambang Nugroho said that the Malaysian company offered Pertamina to jointly develop the oil block along before it joined the tender to bid for the rights to develop the oil concession area from the government.

Tately won the tender last year to operate the Palmerah block after beating several major oil producers including ConocoPhillips, which also operates the giant oil block Corridor oil bloc located near the Palmerah block. (*)