Conoco Awarded Block Offshore Indonesia
The Indonesian government recently awarded the Nila block in the West Natuna Sea offshore Indonesia to production sharing contract (PSC) partners Conoco Nila Ltd. and Inpex Natuna, Ltd., as part of an exploration and production tender offered earlier this year. The award supports Conoco's strategic growth plans for Southeast Asia, which was recently designated the company's fourth core area of operations.
Conoco, which will serve as operator and hold a 65-percent majority interest, believes the 5,300-square-kilometer block has significant natural gas potential. Extensive seismic studies and drilling will be conducted under a three-year work program. The Nila block is located adjacent to the Conoco-operated South Natuna Sea Block B PSC.
Conoco's growing upstream presence in Southeast Asia is anchored by its various Indonesian assets, development of several significant discoveries in Vietnam, exploration acreage in Malaysia and Cambodia, and the added holdings of Gulf Canada Resources Ltd., which resulted in a 72-percent majority interest in Gulf Indonesia Resources Ltd. Gulf Indonesia has oil and natural gas interests in Sumatra, Java and the Natuna Sea, which complement Conoco's existing portfolio of assets in the region.