Indonesia's Pertamina has signed seven exploration and production contracts with BP Exploration, Royal Dutch/Shell Group, Chevron International, Texaco International, Indonesia Petroleum (Inpex) of Japan, and Lirik Petroleum Inc. of Indonesia.
Shell Indonesia acquired the 18,000 sq km Masalembo tract off East Java. Under a production sharing agreement, Shell is committed to spend at least $4 million during an initial 2 year period. Spending could rise to $32.5 million during 10 years.
BP Exploration was awarded two blocks in the Flores Sea off South Sulawesi. It is obligated to spend at least $56.42 million on the 10,268 sq km Sailus block during 10 years and $59.54 million during 1 0 years on the Setengar Block.
Chevron International and Texaco International acquired the 16,116 sq km Nias block onshore and offshore North Sumatra, requiring outlays of at least $39.5 million during 10 years.
The two companies also were awarded an extension of terms on their 8,314 sq km Siak block onshore Riau on condition they spend another $21 million in an exploration program.
Inpex was granted an extension of the 144.73 sq km Attaka block off East Kalimantan after agreeing to added spending of $30 million for exploration.
Lirik is to spend $17 million during 6 years to enhance oil reserves on its 400 sq km block in South Kalimantan.
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