S. Korea's KNOC to buy Itochu?s interest in Southeast Sumatra PSC
Tuesday, March 18 2003 - 04:50 AM WIB
The Korea National Oil Corp (KNOC) said Tuesday it had reached an agreement with Japanese trading house Itochu Corp. allowing it to buy the latter's 8.9 percent working interest in Southeast Sumatra production sharing contract (PSC).
The agreement would provide KNOC about 9,000 barrels of crude a day and about 45 million barrels of recoverable crude reserves, KNOC said in a statement.
KNOC said it had been in talks with Itochu since April last year and that the deal, due to run until 2018, is expected to be completed by the end of March.
The Southeast Sumatra PSC, operated by China National Offshore Oil Corp (CNOOC), is the largest offshore oil field in Indonesia and produces Cinta and Widuri crudes.
CNOOC has a 65.34 percent of working interest in the block, while Japan?s Inpex, Itochu, Paladin Resources plc of U.K. and Mitsubishi Corp hold 13.07 percent, 8.9 percent, 7.48 percent, and 5 percent, respectively. (robert)