TotalFinaElf Seeks Indonesia Contract Extension
JAKARTA (Reuters) - French oil and gas company TotalFinaElf has asked for an extension of its production sharing contract at its offshore Mahakam block due to expire in 2017, an Indonesian official said on Friday. Rachmat Sudibyo, head of Indonesian oil watchdog Balak, said the government was evaluating TotalFinaElf's request for the extension of its contract for the block in East Kalimantan. "We need foreign investment. We are evaluating Total's request for extension of the contract," he told reporters. Industry sources said Total asked for an extension because it wanted to secure a long-term investment in Indonesia. "The reserve of natural gas in Mahakam block is big. To develop it further needs big investment. Therefore, Total asked for an extension," one source said. Total said earlier this year it would spend $1 billion on additional development of gas fields in East Kalimantan in 2002 and 2003 to boost production. Its gas production from Mahakam block is about 2.0 billion cubic feet a day. Sudibyo also said the government was still studying a request by BP last year to extend its contract for the Kangean block off East Java which was due to expire in 2010. (C) Reuters Limited 2002. --------------------------------------------------------------------- To unsubscribe, e-mail: [EMAIL PROTECTED] Visit IAGI Website: http://iagi.or.id IAGI-net Archive 1: http://www.mail-archive.com/iagi-net%40iagi.or.id/ IAGI-net Archive 2: http://groups.yahoo.com/group/iagi =====================================================================
