04 November 2008

Global Oil Giants to Expand Investment in Indonesia

Xinhua News Agency, Monday, November 03, 2008

The world's largest oil company Exxon Mobil Corp. and Japan's largest explorer Inpex Corp. pledged a total investment of at least 144.5 million U.S. dollars in new blocks in Indonesia over the next three years, with their newly won exploration rights, an official was quoted by the Jakarta Post as saying on Saturday.

The two companies were among the winners of nine new oil and gas blocks announced by the Mineral Resources Ministry on Friday.

"The government expects to draw in a total investment of 465 million dollars from the nine blocks, including signing bonuses of 69.5 million U.S. dollars," said the Indonesian Mineral Resources Ministry's director general for oil and gas, Evita H. Legowo.

Exxon, through its subsidiary Esso Exploration Int. Ltd, won the rights to explore the Gunting block in East Java. It plans to invest 17 million dollars in the project for the first three years.

Inpex won the exploration rights in the Semai II block off West Papua. It will carry out exploration with two partners, Consortia Murphy Overseas Ventures Inc and PTT EP. They will jointly inject 127.5 million U.S. dollars in the first three years.


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