Unocal to sign PSC on disputed area

American oil and gas company Unocal Corp. will sign the production sharing contract (PSC) on the East Ambalat block off Makassar Strait despite claims by the Malaysian government that part of the block is located in the Malaysian territory.

Novian Thaib, exploration and production director at the Ministry of Energy and Mineral Resources, said the contract was scheduled to be signed mid-December.

?We shall go ahead with the contract signing as the Ministry of Foreign Affairs has stated that the block is situated in the Indonesian territory,? Novian said.

Hardjono Dhanutirto, a senior official at Unocal confirmed that the firm would sign the contract.

?Unocal will sign the contract and is committed to developing the block,? he said.

The Malaysian government has sent a protest note to the Indonesian government over the latter?s decision to award the East Ambalat block to Unocal, claiming that part of the block was located within Malaysia?s Block ND6 and Block ND7, which were to be developed by Malaysian national oil firm Petronas.(Alex)