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ConocoPhillips and Amerada Hess Corp. will relinquish to the Indonesian government contract areas not considered commercially feasible.

ConocoPhillips and Amerada Hess Corp. will relinquish to the Indonesian government contract areas not considered commercially feasible.

Amerada Hess will return the Tanjung Aru Block in the Makasaar Strait, and ConocoPhillips will do the same for the Nila Block in the Kutei basin off Kalimantan.

Zainal Achmad, an official of Indonesia’s upstream oil and gas regulatory body BP Migas, said the companies failed to find commercial crude oil or natural gas.

ConocoPhillips last year said Menur-1, its third and final commitment well, was plugged and abandoned as a dry hole. It said it was pursuing full relinquishment of the Nila production sharing contract (PSC) before the end of the exploration term in May.

Indonesia awarded a PSC for Nila Block to Conoco Nila Ltd. and Inpex Natuna Ltd. in 2001. The award was part of an exploration and production tender made earlier that year (OGJ Online, Dec. 13, 2001).

Earlier in 2001, Indonesia awarded Amerada Hess and Petronas the Tanjung Aru Block (OGJ Online, Sept. 19, 2001).

Source : ogj.pennnet.com

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