Exxon & farm out of Mandar & Surumana

Bisnis Indonesia reported today that ExxonMobil might farm out 20% participating interest in two blocks in Sulawesi---Mandar & Surumana---to Malaysia's Petronas Carigali. State-owned oil and gas company Pertamina also exercises the possibility to enter the race.  

ExxonMobil currently controls 100% participating interest in the blocks, off west Sulawesi. Exxon secured the Surumana PSC in September 2006, while Mandar in March 2007. BPMigas deputy chairman Ahmad Luthfi said Petronas and ExxonMobil are in intensive talks for the farm out deal.

Exxon failed to get significant reserves from the Rangkong-1 drilling well (dryhole), but expressed its commitment to proceed with the drilling of two other wells. Results from the second well drilled, Sultan, has yet to be known.

Petronas and ExxonMobil are long-time partners. Early this month, both companies signed production sharing contracts for further development of seven oil fields offshore Peninsular Malaysia namely Seligi, Guntong, Tapis, Semangkok, Irong Barat, Tabu, and Palas.

Exxon is also a partner for Pertamina in Cepu Block and Natuna D-Alpha. But the future of collaboration between the two companies in D-Alpha is pending government decision on the state-owned company's main partner. Exxon, Petronas, Shell, PTT, and StatOil are among oil majors mentioned as potential partners for Pertamina. 

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