&lt;Enim Oil Co Ltd> a wholly owned subsidiary of &lt;Southern Cross Ltd> of Colorado signed a production sharing contract with Indonesias 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 Pertaminas 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 1137 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 Pertaminas favour with operational costs deducted. Pertamina can market at least 50 pct of Enim Oils 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 150000 barrels a day.
ENIM OIL SIGNS CONTRACT WITH INDONESIA'S PERTAMINA