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Show ews Release Rollers. Cowan & Brenner, Inc. i International Division 52 MOUNT STREET, LONDON, W1Y 5RE PHONE: 01 - 499 0691 MARGARET GARDNER MANAGING DIRECTOR DR. WENDELL PHILLIPS SIGNS INDONESIAN OIL DEAL Dr. Wendell Phillips has signed an oil production sharing agreement with the Indonesian State Oil Corporation, Pertamina, it was announced today (Wednesday) at a press conference held in London. The contract obtained through international tender and in the teeth of intense competition from many of the major oil companies of the world, allows Dr. Phillips the right to explore for and exploit oil on a vast tract of seabed and Jungle covering an on-shore and off-shore area of 32,000 sq.kms. in the northern part of West Irian in New Guinea. Dr. Phillips, who has made an initial payment of $500,000 for technical information, is committed to spend $17-5 million over the next eight years. The contract which is for thirty years allows a distribution of profits between Pertamina and Dr. Phillips on the basis of 65/35^. Production over 75,000 barrels a day splits the profit ratio at the rate of 67-5$ and 32.5$. After ten years the total area of Dr. Phillips' concession will not exceed more than 10,000 sa.kms. The contract requires Dr. Phillips to pay $1 million bonus after oil production has reached 50,000 barrels a day, a further $1 million bonus at 75,000 barrels a day and a further $2 millions after reaching 100,000 barrels a day. In addition, Dr. Phillips is also * considering building a hospital, a school and a social welfare centre for the West Irian population after production has. reached 75,000 barrels a day. Dr. Phillips paid tribute to the senior Indonesian ministers and government officials with whom he dealt, naming Professor Soemantri, the Minister of Mines, and Dr. Ibnu Sutowo, President of Pertamina. He said, "This was a really tough contract to negotiate, much tougher than any others I have previously negotiated in other parts of the world". . /. |
