The Indonesian government 13 December 2006 awarded Norway’s Statoil ASA exploration rights over new oil blocks along with others 17 foreign and local companies, which will invest a total of $235.8 million during the first three years of exploration.
The awards are for the exploration and bringing to production of 21 onshore and offshore blocks through a direct offer last August. The project is expected to boost Indonesia’s crude oil production, which fell to its lowest levels in over three decades earlier this year.
Statoil one of the largest net sellers of crude oil in the world, and a major supplier of natural gas to the European continent, operates around 2000 service stations in 9 countries and its partner the third-biggest U.S. oil company ConocoPhillips won the rights to explore oil and gas in the Kuma block in western Sulawesi.
In December 18th 2006 Statoil revealed a proposal to merge with the oil and gas divison of Norsk Hydro, a Norwegian conglomerate. If the merger goes through, the new company will be the biggest offshore oil company in the world.
