Unocal buys ExxonMobil's interest in E. Kalimantan blocks

Unocal Indonesia Corp, a subsidiary of American oil and gas company Unocal Corp. said today American oil and gas company Exxon Mobil had agreed to sell to Unocal its shares in the Makassar Straits Block and Rapak Block.

Unocal Indonesia's external relations coordinator Erwin Lebe noted however that the agreement was subject to the government's approval.

"Negotiation between Unocal and Exxon-Mobil had been completed in 2000 and the transfer of interest (from ExxonMobil to Unocal) is subject to government's approval," Erwin said.

He further said he was optimistic the approval would be given soon.

Prior to the acquisition, ExxonMobil controlled 50 percent interest in Makassar Strait Block A and 40 percent in Rapak. Once the acquisition is approved by the government, Unocal will hold 100 percent interest in the two blocks

Erwin refused to reveal the acquisition price. However, the release from Unocal Corporation in early December last year said Unocal would spend $155 million to acquire the interests of Exxon Mobil affiliates in the Makassar Strait and Rapak. (alex)