Shell keen to enter Indonesian E&P once more

Royal Dutch Shell Plc, Europe's second-largest oil company, said it wants to resume work in Indonesia after the country's energy minister indicated in media comments that the company is again welcome in Indonesia, Bloomberg reported Thursday.

Indonesian Energy Minister Purnomo Yusgiantoro was cited in Dutch newspaper De Telegraaf today as saying the country had spoken with Shell about the "rules of doing business" in Indonesia after Shell signed an exploration agreement with Malaysia earlier this year in an area disputed by Indonesia. Shell is welcome "if it keeps to the rules," the paper cited Yusgiantoro as saying.

"It is encouraging to read that we are welcome again," Shell Chief Executive Jeroen van der Veer said in The Hague today. "We will be keen to work again in Indonesia."

Indonesia had previously awarded the Ambalat area in the Sulawesi Sea to Shell, which then sold it to Eni SpA in 2001 after failing to find oil. Eni owns a 55 percent share of the drilling venture while Unocal has the rest.

Malaysia has since also given drilling rights in the area to Shell.

Dutch media reported that Indonesia was threatening to bar Shell from new energy licenses after it signed the agreement with Malaysia.

In March, Indonesia stationed as many as seven warships in the area, while Malaysia sent its navy and military planes. Both governments have said they are seeking a peaceful resolution to the dispute.(*)