Petronas farms in East Java exploration block

Malaysian oil and gas conglomerate Petronas is in advanced talks to acquire interest in an exploration block offshore East Java, according to an industry source.

The source said that Petronas would acquire 50 percent working interest in Karapan production sharing contract (PSC) area from RIMS Energy, a local production-sharing contractor which holds 100 percent working interest in the block.

Karapan block is adjacent to Ketapang offshore exploration block operated by Gulf Indonesia, where significant oil and gas had been discovered. Petronas also had 50 percent working interest in Ketapang PSC.

?Petronas and RIMS are now concluding paperwork to start the joint venture,? the source told Petromindo.Com on Monday.

Earlier, a RIMS official said the company had conducted 2D seismic over the exploration block and would drill three wild cat exploration wells starting this year. (alex)