Petronas increases stake in E. Java exploration block

Malaysian state oil company Petronas increases its working interest in Karapan PSC block offshore East Java from 50 percent to 90 percent, an industry source said.

The source said Petronas took over 40 percent interest in the block from local partner RIMS Energy Karapan Limited after the latter failed to fulfill its part of exploration funding commitment.

Petronas farmed in the block in 2002 and jointly operated the block through an equally-owned Joint Operating Company

Petronas would assume the block?s operatorship.

REKL will continue to hold 10 percent interest on free carried basis.

Karapan block operator had made two hydrocarbon discoveries in the block. (alex)