Unocal ?wait and see? on disputed exploration block

US oil company Unocal Corp. confirmed on Monday that it had been awarded East Ambalat offshore block in the northern part of East Kalimantan, but said it would not sign PSC agreement until after Indonesia and Malaysia resolve problems over the disputed block.

?Unocal has received notification from the government about the award, but we will not sign PSC agreement until problems with Malaysian government is resolved. Therefore we urge the government to immediately resolve the problems,? said Hardjono Dhanutirto, a Unocal Indonesia senior official on Monday.

He added that Unocal is ready to execute work programme and budget commitment on the block once the dispute is resolved. He did not elaborate the investment Unocal is proposing to spend to explore hydrocarbon on the block.

Malaysian government had sent protest notes to Indonesian government over the latter?s decision to award East Ambalat block, 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.

Malaysian foreign minister Datuk Seri Syed Hamid Albar said recently that the dispute might be discussed at next month's meeting of the Malaysia-Indonesia Joint Border Committee in Jakarta.

Deputy Prime Minister Datuk Seri Mohd Najib Razak is expected to represent Malaysia at the meeting. He is also expected to meet President Susilo Bambang Yudhoyono. (godang)