Uchenna Izundu
International Editor
LONDON, Jan. 16 -- Indonesia let a production-sharing contract Jan. 16 to ConocoPhillips and Statoil ASA for the deepwater Kuma Block off the west coast of Sulawesi.
The block covers an area of more than 5,000 sq km and lies in 1,000-2,000 m of water.
ConocoPhillips is the block operator with a 60% share, and Statoil holds 40%. The PSC marks the first time Statoil has been granted acreage in Indonesia.
The companies' winning bid consisted of a $5 million signature bonus and a commitment to carry out 1,000 sq km of 2D seismic, and drill one well.
The award follows London-based Premier Oil PLC's announcement last month that it had received an onshore exploration license spanning 3,396 sq km on southeast Buton Island, in Sulawesi. Premier will hold a 30% nonoperated equity interest. It said that oil seeps are prolific on the island.
Premier and its partners will carry out 265-km of 2D seismic to confirm at depth the structures mapped at surface, and will drill one exploration well. Five leads have been identified on the block.
CNOOC Ltd. also won an exploration license for the onshore Batanghari Block in central Sumatra.
Indonesia is eager to attract investment in its upstream sector to boost crude oil production, which plummeted to its lowest levels in 2006.
Contact Uchenna Izundu at [email protected].
