Unocal to start drilling at East Ambalat block next week

Unocal Indonesia Ventures Ltd, the operator of East Ambalat PSC offshore East Kalimantan, is scheduled to commence drilling exploration program next week, industry sources said Friday.

The sources said the drilling program consists of two exploratory wells and it will be carried out using semi-submersible drilling rig Ocean Baroness.

The government awarded a contract to explore the East Ambalat block to Unocal in November last year.

Meanwhile, the Malaysian government on February 16 awarded a similar contract to Shell for an area which significantly overlap acreage awarded by Indonesian authorities to Italian oil firm ENI (Ambalat) and Unocal. The Indonesian government awarded the Ambalat block to ENI in 1999.

The Indonesian government has said it will guarantee security for ENI and Unocal to continue oil explorations in disputed offshore area of Ambalat. Tensions were mounting between the Indonesian and Malaysian governments as both sent warships to the area to insist their claims over the area. (Robert)