Seven oil related companies to invest in Bojonegoro

At least seven companies have obtained approval from the Bojonegoro regency, East Java to provide oil exploration services and other oil related activities in the regency's Cepu oil block, Bisnis Indonesia reported on Friday.

The seven companies include PT Gita Monica Singapore and PT Bahari Gas Singapore which will provide offshore exploration services with investment commitment of about US$1 million, respectively.

The other companies including PT Mitra Inachin Petroleum, PT Yellow River Petroleum, PT Vintage Petroleum, PT New Harison Petroleum will provide oil exploration supporting services. The companies, all from China, plan to invest about US$1.5 million, respectively.

The investment approvals were issued after Pertamina and ExxonMobil Indonesia reached an agreement recently to jointly explore the untapped Cepu oil block in the regency.

The two oil giants are submitting the development plan of the Cepu oil block which is estimated to have oil reserves of about 600 million barrels. The two companies plan to begin exploration activities in the middle of this year.

The local government has appealed to the ministry of energy and mineral resources to set up oil processing facilities in the regency so that more oil related companies would pour their investment into the regency. (*)