RI asks Iraq to honor oil contract

Indonesia has asked the new government of Iraq to honor the oil and gas exploration and production contract awarded the previous regime of Saddam Hussein to Indonesia?s state oil and gas company Pertamina.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said he had voiced the request to Iraq?s new oil minister Ibrahim Bahr al-Uloum during the OPEC meeting in Vienna on Thursday.

?He (Iraq?s oil minister) has yet to make any response,? Purnomo told reporters on Sunday.

Last year, Iraq?s former government awarded Pertamina with a contract to develop the Block 3 of the Western Desert Block concession covering a 17,700 sq kilometers of land.

Pertamina recently said it planned to begin explorations in the Western Block next month with a investment of US$24 million in the first three years.

Under the contract, Pertamina has an option to extend its exploration activities by another two years with a further $16 million investment if it fails to complete the work in the first three years (Godang)