Indonesia triple play bid to lift reserves

Jakarta (IOGNews) : Indonesia signed three new production sharing contracts today with ConocoPhillips and its partner Statoil, CNOOC Ltd and Premier Oil in an effort to boost reserves.

Asia-Pacific's only Opec member has been offering new exploration rights to try to stem a steady decline in oil production that has threatened its status as an exporter.

Indonesia has struggled to maintain output as the country has failed to tap new oilfields fast enough.

ConocoPhillips is in a joint venture with Statoil of Norway to explore 5086 square kilometres of the Kuma block off west Sulawesi.

The oil companies will get 35% of any oil found in the Kuma block and 40% of gas, while the rest will go to the government.

Indonesia also signed an oil contract with CNOOC for the onshore Batanghari block in central Sumatra. The Chinese company will get 20% of any oil found and 40% of gas in Batanghari.

"We will know whether there is oil and gas in those areas after they carry out exploration. However, our expectation is that they will find oil or gas," said Indonesia's Oil Minister Purnomo Yusgiantoro.

Indonesia also signed a contract with Premier Oil for the onshore and offshore Buton block in south-east Sulawesi. The UK-based company will get 25% of any oil found and 40% of gas.

Indonesia said it has about 8.6 billion barrels of proven and potential oil reserves and 182 trillion cubic feet of gas, Reuters reported.