Tenggara Capital develops Madura oil field
Wednesday, March 22 2000 - 04:00 AM WIB
Malaysia's Tenggara Capital has signed production sharing contract agreement with the state oil and gas firm Pertamina to develop the Karapan Block oil and gas field off the coast of Madura.
Pertamina director for exploration and production Gatot K. Wiroyudo said that the signing agreement was made during a recent visit to Jakarta by Malaysia Prime Minister Mahathir Mohamad.
Gatot said that Tenggara Capital teams up with local PT Wirabuana Pan Resources Karapan.
The Karapan Block has a 3,800 m2 oil and gas concession with an estimated 345 million oil reserves and 3.5 trillion cubic feet of gas reserves.
The 30 years production-sharing contract includes a 70:30 split for gas, and 85:15 for oil.
Tenggara Capital has said that it planned to invest US$24 million for oil and gas development over the next three years. Tenggara chairman Kamal Salih said that the company would issue bonds to help raise the necessary financial need. (*)