Pertamina to revive two oil blocks in Iraq

PT Pertamina plans to revive exploration activities at two oil fields in Iraq the state oil and gas company left following the war in the country a few years ago.

Speaking to reporters following a meeting with some representatives of the Iraqi government on Thursday Pertamina?s President Director Karen Agustiawan said that the company?s plan to resume exploration works at the two oil fields had received full support from the Indonesian government.

Pertamina secured exploration contracts in Western Desert and Tuba blocks in 2002. The Western Desert block, located about 300 kilometers to the south of Baghdad, is estimated to hold oil reserves of about 3 billion barrels. Pertamina left the oil blocks due to security uncertainty following the war between the American soldiers against supporters of President Sadam Hussein.

Pertamina is committed to spending up to US$24 million during the first three years after the first oil is found. The contract can be extended by two more years with investment commitment of up to $16 million. (*)