Pertamina Signs Exploration Agreements with Oil Majors

Pertamina has signed new oil and gas contracts with BP, Conoco and Amerada Hess. Pertamina signed oil and gas contracts last week with BP for Bawean block in East Java, Conoco for Nila block in Natuna, Amerada Hess for Tanjung Aru block, TotalFinaElf for Donggala block, Zodan N.V for Popodi block and Zudavi N.V. for Papalang block. All of the oil and gas blocks are located in Makassar Straits and are believed to be potentially rich in hydrocarbons.

Pertamina also signed an oil contract with Gulf Canada Resources Ltd for the Sakakemang-Jambi block in Sumatra and with Expan for Tarakan Kaltim block, East Kalimantan and Rimau block in South Sumatra. The terms of the contracts were not released. The contracts would fall under Indonesia's old oil law in which Pertamina exercises monopoly control over the country's energy resources. A new law changing that has been ratified but not yet put in force by the government.