PT Exspan questioned over technology rights

PT Exspan Petrogas Internusa, a subsidiary of national oil and gas company Medco Energy Corporation was questioned on Monday over its rights to use an enhanced oil recovery technology, The Jakarta Post reported.

PT Wahana Internusa said it had the right to apply the so-called Vibro Seismic Impact Technology (VSIT) in Indonesia and it had not yet made any deal with Exspan Petrogas for the use of the technology.

It made the statement following Medco's announcement that its subsidiary had signed an agreement to set up a joint venture with PT Sarana Chaliutama to employ the technology in the oil fields of Exspan Kalimantan, also a subsidiary of Medco, and elsewhere in the country.

Medco's chief executive officer Hilmi Panigoro said Wahana had only the exclusive right to employ the technology in the oil fields of American oil and gas company PT Caltex Pacific Indonesia.

The joint venture agreement between Exspan Petrogas and Sarana Chaliutama had been approved by the holder of VSIT patent, All-Russian Scientific-Research Institute of Natural Gases and Gas Technologies (VNIIGAZ).

If anything, he said, VNIIGAZ had 20 percent shares in the joint venture with the remaining shares equally owned by Exspan Petrogas and Sarana Chaliutama. (*)