As security gradually improves in Iraq, Indonesian state oil and gas company PT Pertamina is seeking ways to revive two long-frozen oil projects in the war-ravaged country, which boasts the world's third-largest petroleum reserves.
Pertamina president director Karen Agustiawan has asked the local Iraqi government representative to reactivate cooperation between the company and the Iraqi Oil Exploration Company (IOEC) in exploring Western Desert Block 3 and Tuba oil blocks in Iraq.
"We expect the G-to-G projects in Tuba and Western Desert can be reactivated," Karen said Thursday after a meeting with Younis S. Sarhan, the Iraqi government's charg* d'affaires to Indonesia.
"He said he would bring this proposal to his government."
Pertamina secured an exploration contract for Western Desert Block 3 in 2002.
At that time, the firm planned to spend US$24 million in the first three years of exploration activities in the block, which is believed to contain oil reserves of up to 3 billion barrels.
As for the Tuba block, with 500 million barrels of proven oil reserves, Pertamina was still in a bidding process for it in 1998.
Both projects, however, were put on hold when the United States invaded Iraq in 2003.
Evita H. Legowo, director general for oil and gas at the Energy and Mineral Resources Ministry, said the government fully supported Pertamina's interests.
"We want to establish our own oil projects in Iraq, because the country has huge reserves," she said.
Earlier this month, Pertamina was included among a total of 22 firms that bid in Iraq's first international tender since former president Saddam Hussein nationalized the country's massive oil and gas industry in 1972.
Pertamina had been eyeing the West Qurna block, estimated to have reserves of 8.6 billion barrels of oil.
But it withdrew its bidding proposal at the last minute.
"The cost per barrel *offered by the Iraqi government* cannot meet our economic viability," Karen said.
The Iraqi government has hinted at re-tendering the remaining blocks.
Karen said Pertamina might also make a bid in the second round of the tender process.
"Of course we will keep evaluating whether the cost per barrel meets our economic calculation," she said.
