Petronas, Central Java to jointly develop Muriah block

Malaysia?s state oil and gas company Petronas will work with the Central Java provincial administration in developing and drilling the Muriah block in Jepara regency, the Bisnis Indonesia newspaper reported in its Tuesday edition.

Petronas has acquired the license belonging to the British Petroleum recently to drill the Muriah oil and gas block.

Central Java?s energy and mining agency chief Eddy Haryono said both the province and Petronas are currently discussing about province?s share in the project.

The province has asked for over 10 percent participant stake in the project. Some portion of this stake must be given to the regency where the project is located.

If the cooperation is materialized, Petronas will call for tenders for the 600-mile-long pipeline from the offshore to the on shore and until Tambak Lorok power plant in Semarang.

?Petronas is still actively lobbying Central Java Governor Mardiyanto to speed up the finalization of the partnership,? Eddy said.

Eddy did not mention how much investment needed for the whole project.(*)