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UPDATE: CPC Eyes 24.5% In ConocoPhillips' Offshore Indonesia Block



(Adds comments from CPC, Total's taking a stake)

By Alex Pevzner

Of DOW JONES NEWSWIRES

TAIPEI -(Dow Jones)- Taiwan government-owned refiner CPC Corp. is in talks with Houston, Texas-based ConocoPhillips (COP) for a stake in an exploration block offshore Indonesia, two senior officials at CPC's Exploration & Production Business Division said Tuesday.

CPC may take a 24.5% stake in ConocoPhillips' Arafura Sea Block, the officials said.

"No seismic tests were done yet, but there are large structures there, so if we do find something, the potential is big," said one official, adding the signing of a farming in agreement isn't likely this year.

Both of the CPC officials declined to be named, as the talks haven't been concluded yet.

Officials at ConocoPhillips couldn't be immediately reached for comment.

CPC has already taken a 24.5% stake in another offshore exploration block of ConocoPhillips, called Amborip VI, to the north of the Arafura Sea Block, CPC officials said earlier.

France's Total S.A. (TOT) recently took a 24.5% stake in Amborip VI and may also take the other 24.5% stake in the Arafura Sea Block, a CPC official said Tuesday.

Total officials couldn't be reached for comment.

The CPC official said the company didn't pay for the stake rights but will have to share in drilling costs once drilling starts. Seismic tests for the Amborip VI block will likely start early next year, the official added.

CPC is exploring for oil and gas in Australia, the U.S., Chad, Libya and Indonesia and produces oil in Ecuador and Indonesia.

-By Alex Pevzner, Dow Jones Newswires; 8862-2502-2557; alex.pevzner@ dowjones.com (Isabel Ordonez in Houston contributed to this article)


  (END) Dow Jones Newswires
  11-24-090720ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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