Petronas has 50% stake in Pasemah oil block
Thursday, July 6 2000 - 04:00 AM WIB
Medco Energi Internasional said that the Malaysian state owned oil company Petronas will have a 50 percent interest in the Pasemah oil block, South Sumatera and its subsidiary PT Exspan will control the other 50 percent, Satunet reported on Wednesday.
Medco's president John Karamoy said in Jakarta on Tuesday that PT Exspan would act as the operator of the oil block although the company and Petronas through its subsidiary Carigali Overseas had en equal ownership in the oil block.
He added that the partnership with the Malaysian company was signed last month and both companies had agreed to jointly finance the exploration of the oil block.
John said that the exploration costs in the oil block would reach between $300 million and $400 million but he did not say when the exploration works would be carried out.
Medco, partly owned by businessman Arifin Panigoro, took over the oil block in November 1998 from a joint venture between Esso and Mobil oil, which had spent about US$11.4 million on exploration activities. (*)