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Show Keralb INTERNATIONAL e » nbutie Published with The New York Times and The Washington Post PARIS, THURSDAY, FEBRUARY 19, 1970 A Billionaire To Seek Oil In Indonesia American to Spend $17 Million in Area LONDON. Feb. 18 (Reuters). -Wendell Phillips, an American oil billionaire who once sold newspapers on a street corner, disclosed at a news conference here today /details of a multimillion- dollar oil partnership he has made with Indonesia. The agreement, with the Indonesian state oil corporation Pertamina, gives him exclusive exploration and exploitation rights for 30 years over more than 12,000 square miles of seabed and jungle in the northern part of West Irian in New Guinea. Some years ago test wells drilled in the area gave encouraging signs of oil, but the concession, then held by the Anglo-Dutch Shell group, was relinquished for political reasons. 'Geology Encouraging* "We have not yet made a final assessment of the oil deposits in West Trian but wa are hoping for a multimillion. barrel field-certainly the geology is encouraging," he said. Financial arrangements for the Pertamina contract provide for a share of the profits, with Pertamina initially getting 05 percent and Mr. Phillips 35 percent. In addition Mr. Phillips has already paid $500,000 for technical information and when the oil gushes out of the ground at a rate of 50,000 barrels a day he will make a bonus payment of $1 million, then another $1 million at 75,q00 barrels and $2 million when daily production reaches 100,000 barrels. In addition he is committed to spending $17.5 million on the project over the next eight years. He has also undertaken to consider building hospitals, schools and a social welfare Wendell Phillips center for Indonesian workers and their families. Helps to Be a Sheikh L O N D O N , Feb. 18 (AP).-Mr. Phillips, who claims to be the world's largest individual oil concessionaire, described the oil production sharing contract with Pertamina, as "my r ost, important-ever venture in the oil business." He said that "I suppose \ art of m y success in winning shis contract is that I speak Arabio and a m also a sheikh-you don't get many oil presidents with those qualifications." Others Interested L O N D O N , Feb. 18 <UPI).- Mr. Phillips said that international oil companies in Amei-- ica. Britain, France, West Germany and Japan had contacted him and voiced their interest in the venture. "Several dozen concerns are willing to cooperate," he said. He told a questioner he was considering forming his own tanker fleet and was thinking in terms of nine or 10 supertankers each of more than 200.000 tons. His interests in concessions in the Middle East, South America and Southeast Asia produce about one million barrels of oil a day. He is a sheikh of the Bal- Karith tribe and holds about '00.000 square miles in oil con-vssions. Mr. Phillips is also economic adviser to the Sultan ol Oman. |