ENIM OIL SIGNS CONTRACT WITH INDONESIA'S PERTAMINA
<Enim Oil Co Ltd>, a wholly owned
subsidiary of <Southern Cross Ltd> of Colorado, signed a
production sharing contract with Indonesia's state oil company
Pertamina to explore for oil in the Lematang block of Sumatra.
    It was the second production sharing contract signed by
Pertamina this year. Three contracts were awarded in 1986.
    The agreement, signed at a public ceremony in the presence
of Energy Minister Subroto, calls for the standard oil
production split of 85-15 pct in Pertamina's favour.
    Hong Kong-based Enim Oil is contracted to spend 120 mln
dlrs over the next six years, including 10 mln in the first two
years.
    The 1,137 sq km Lematang block is located between two oil
producing sectors of South Sumatra, and Enim officials said
there is a good chance of getting a high return on investment.
    A spokesman said the area, which has not been drilled
before, was neglected because it is deeper than surrounding
blocks. He said new developments in seismic techniques have now
made seismic survey possible.
    The agreement is similar to a production-sharing contract
Pertamina signed with Occidental Petroleum Corp in February.
    Gas produced will be divided 70-30 pct in Pertamina's
favour with operational costs deducted.
    Pertamina can market at least 50 pct of Enim Oil's
production share, and Enim must give up 10 pct of its interest
in the block to an appointed Indonesian company if it finds
oil.
    Enim must also set aside 28.57 pct of its crude for
refining in Indonesia if its share exceeds 150,000 barrels a
day.
 REUTER
