Norwegian Statoil stays focused on Indonesia despite lack of results

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Norwegian state oil and gas company Statoil is still focusing on Indonesia despite several petroleum giants relinquishing their blocks after years of unprofitable exploration, an official has said.

Statoil’s spokesman for Indonesia, Mochamad Tommy Hersyaputera, told The Jakarta Post over the weekend that it was still keen to explore the deep waters in the eastern regions of Indonesia.

“We are seeking new opportunities to tap into new deep-water projects in Indonesia. We still believe the country has new hydrocarbon reserves,” he said in a telephone interview.

Statoil previously allocated US$212 million to develop the offshore block for which they won licensing in 2007. They drilled three wells and spent $174.1 million only to conclude that the basin was “uneconomic”.

“We realize that this is a high-risk business so we do not see it as a loss,” he said.

Earlier this year, US-based ExxonMobil, US-based Marathon, US-based Hess and Netherlands-based Tately NV all decided to return their blocks in the Makassar Strait after deeming the basins uneconomic.

Source: thejakartapost.com

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