CORRECT(11/24):CPC Eyes 24.5% In ConocoPhillips' Offshore
Indonesia Block
("=2nd UPDATE: CPC Eyes 24.5% In ConocoPhillips' Offshore Indonesia Block"
published at 1825 GMT Tuesday misstated that Chevron might sell its 80% stake in
offshore Indonesia project in the sixth paragraph. The correct version follows:)
By Alex Pevzner
Of DOW JONES NEWSWIRES
TAIPEI -(Dow Jones)- Taiwan government-owned refiner CPC Corp. is in talks
with Houston-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.
ConocoPhillips declined to comment. Executives of the company have said
recently that the third-largest U.S. oil company by market value was looking for
partners to mitigate the risk of exploring in the Arafura basin, and that it was
finalizing agreements with two partners. ConocoPhillips, which recently
announced a major restructuring to shore up its finances, has said the basin has
"giant structures." The Arafura basin is located offshore Indonesia and northern
Australia.
ConocoPhillips' move comes at a time when some international oil companies are
looking for partners to share the risk of developing massive, expensive
international projects that were seen as viable when oil and natural gas prices
were at their peak last year but that after prices collapsed are becoming too
pricey.
Chevron Corp. (CVX), the second-largest U.S. oil company by market value, said
Monday it is seeking partners for the multibillion-dollar Ganal-Rapak deepwater
gas development off Indonesia's East Kalimantan province. This means it may
reduce its 80% stake in order to mitigate risk in the venture.
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.
-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
11-24-092247ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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