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The Japan Petroleum Exploration Co. (Japex) and Mitsubishi
Corp. will invest US$400 million to boost production from the Kangean
oil and gas field in East Java after the Japanese firms bought 50
percent of the block.
Japex president director Yuji Tanahashi said Thursday that the
consortium had bought a 50 percent stake in the block from PT
Energi Mega Persada (EMP) through an agreement signed last month.
The two companies bought the stake for $360 million, with the stake
being split equally between them.
Located in the eastern part of Madura island, the Kangean block, which
mostly produces gas, is currently pumping out some
10,000 barrels of oil equivalent a day, with all of the production
supplying the domestic market.
According to Yuji, the consortium expects the new investment to boost
the block's production to 60,000 barrels of oil
equivalent per day within three years.
"We plan to revitalize the production of crude oil and natural gas, and
are prioritizing production for the domestic market,"
he said.
He added that the consortium planned to increase its investment in the
future.
The Kangean field is estimated to hold 1.5 trillion cubic feet of gas.
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