Petronas acquires farmout in Indonesian block

Malaysian state oil company Petronas has agreed to acquire a 50% stake in the Pasemah Block from PT Medco Energi International Tbk. of Indonesia. The farmout agreement marks Petronas's first involvement in an Indonesian exploration and production project.

July 25, 2000

SINGAPORE�Malaysian state oil company Petronas has agreed to acquire a 50% stake in the Pasemah Block from PT Medco Energi International Tbk. of Indonesia. The farmout agreement marks Petronas's first involvement in an Indonesian exploration and production project.

The firms signed the contract through their subsidiaries, Petronas Carigali Overseas Sdn. Bhd. and Exspan Pasemah Inc.

The 8,560 sq km block, described by the firms as a frontier area with attractive prospects, is under contract to PT Medco until 2023. The farmout agreement includes a commitment to drill up to three exploration wells, starting this month.

PT Medco will operate the block through a joint operating agreement.

The Indonesian firm took over Pasemah Block in November 1995 from a joint venture of now-merged Exxon Corp. and Mobil Corp. The companies had racked up $11.4 million in exploration expenditures on the block.