Eric Watkins
Senior Correspondent
LOS ANGELES, June 27 -- Indonesia's PT Kepri Oil Inti Energi said it wants to take over development of Sembilang oil field abandoned by ConocoPhilips on Block B in the South China Sea off West Natuna.
ConocoPhilips, which considered Sembilang noncommercial, had returned it to the government.
ConocoPhilips held a 40% interest in Sembilang and served as operator of the Block B production-sharing contract. An active development program in Belida field resulted in gross production averaging 65,000 b/d in 1999.
Kepri Oil, a subsidiary of the Riau Island regional administration company PT Pembangunan Kepri, said it has set aside $20 million to start exploration and develop the field.
Pembangunan Kepri Pres. M. Reviansyah said three foreign banks—BNP Paribas, Barclays Bank, and Bank of United Switzerland—have pledged funds to finance the venture.
Contact Eric Watkins at [email protected].
