After signing a memorandum of understanding (MoU) with Indonesia’s state company Pertamina last September, Statoil has just signed a production sharing contract (PSC) for the deepwater Karama block in the Makassar Straits.
The Norwegian oil firm said it will have a 51% stake in the block, which covers 4,286 sq km in water depths of 800-2,200 m while the country’s national oil and gas firm, Pertamina, will hold the remaining 49%.
Pertamina and Statoil have budgeted $75 million to explore the block.
“We are pleased by this announcement which will further develop the partnership between Pertamina and Statoil,” says Peter Mellbye, Statoil executive vice president of International Exploration & Production (INT).
“The two companies complement each other with regard to skills and technology. We are looking forward to working closely with Pertamina in unlocking the resource-potential in the Karama license.”
“The award is a key step for Statoil to build an upstream position in South East Asia and fits out global exploration strategy well,” Mr. Mellbye adds.
“The operatorship of the Karama Block is a great opportunity to transfer and share Statoil’s strong technological capabilities that have been developed through operations on the Norwegian continental shelf, and internationally, over the past 30years.”
The companies’ winning bid in the first three years of the exploration period comprised: a US $5 million signature bonus, 1,900 square kilometers of 3D seismic and three exploration wells in the acreage that has not previously been explored for oil and gas.
The block is located next to and south of the Kuma block, off the west coast of Sulawesi. Statoil has a 40 pct share in Kuma, which was awarded in mid-January.
