JAKARTA�Indonesia has signed seven exploration and production contracts that will be worth $112 million over the next 10 years. In a related move, state oil and gas company Pertamina has revised an important LNG transportation contract, saving $60 million through 2010.
Mines and Energy Minister Susilo Bambang Yudhoyono said the E&P contracts, signed with four international and three domestic firms, confirm that Indonesia is still an attractive country for oil and gas investment.
Pertamina signed a production-sharing contract (PSC) with Australia's Energy Equity Pty. Ltd. for a block in Sulawesi's offshore Bone Bay. Kalrez Petroleum of Australia signed a PSC for Bula block in the Maluku Sea. And Kuwait's Kufpec Indonesia Ltd. was awarded the Seram block in the same area.
Pertamina also awarded a technical assistance contract (TAC) to Energy Equity for Gajah Besar field in South Sumatra. Meanwhile, local firm PT Indama Putera Kayapratama was awarded South Sumatera Kaya field under a TAC, while PT Binatek Reka Kruh was granted South Sumatra's Kruh field. PT Wahana Sad Karya and its Taiwanese partner, First Union Resources, have received Jatirarangon field in West Java.
TACs are technology-driven contracts designed to revive production in aging fields.
Bambang said he expects more contracts to be signed this year.
In a related development, Pertamina has reached an agreement with Pacific LNG Transport Ltd. to cut LNG transportation costs. This will prevent a loss of $60 million during the 2000-10 chartered period, as the LNG vessel Dwiputra had previously been chartered at a higher rate.