Malaysia firm signs contract to develop Karapan Block
Wednesday, March 22 2000 - 04:00 AM WIB
Oil and gas firm TOB Exploration (Tobex) - a subsidiary of Malaysian firm Tenggara Capital Bhd -- had signed a 30-year production sharing contract with state oil and gas company Pertamina to develop the Karapan Block in Madura, East Java with an investment commitment of US$200 million, Bisnis Indonesia reported.
Head of Pertamina's foreign contractors management body (BPPKA) Gatot K. Wiroyudo, who is also director of exploration and production, said on Tuesday the contract was signed during the recent visit of Malaysian Prime Minister Mahathir Muhammad to Indonesia.
Tobex would develop the oil block in a partnership with PT Wirabuana Pan Resources Karapan, Gatot said.
The Karapan block covers 3,800 square meters off the coast of Madura island, around 50 kilometers northeast East Java provincial capital of Surabaya.
It is estimated to have 345 million barrels of oil and 3.5 trillion cubic feet of gas. (*)