PTTEP establishes Indonesian exploration unit

Thai state oil firm PTT Exploration and Production Public Company Limited said on Friday it had established a subsidiary called PTTEP Merangin Company Limited on October 12, 2005 to carry out petroleum exploration and production in Indonesia.

PTTEP Merangin Company Limited's fully-paid up registered capital is US $50,000, consisting of 50,000 ordinary shares at US $1.00 each, with 100% shareholding by PTTEP Offshore Investment Company Limited (a subsidiary of PTTEP).

PPTEP Merangin has 39 percent working interest in Merangin PSC onshore South Sumatra. JSX-listed oil and gas firm Medco Energi is the operator of the block with 41 percent working interest, while Japan's Mitsui Oil Exploration Company holds the remaining 20 percent.

Merangin partnership is planning to spud fisrt exploration drilling on the block next month. (alex)