[Kabar-indonesia] 16 oil/gas/mining reports: PLN Needs US$7.7b to Expand; Newmont; Tuban; Medco

[JoyoNews at aol.com]

Note: also see the previously sent: Bloomberg: RI may exempt PLN 
from open-bidding on US$7.6b in contracts [+JP]

16 reports:

- JP: PLN needs to invest US$7.7 billion 
  on major network expansion 
- Indonesia temporarily postpones sale 
  of Newmont's Martabe gold mine
- Chinese seek majority stake in 
  Indonesia's Tuban oil refinery
- Fierce Competition in Prospect 
  for Australian LNG
- Indonesia's PLN expects govt to issue 
  decree on new power projects this week
- PLN to cut oil-based fuel use 19% in 2007
- Indonesia's PLN appoints Medco consortium 
  to build Sarulla power plant
- Indonesia power firm says BP gas supply
    almost normal
- Indonesia's PLN prequalification round 
  for 6 projects draws 102 interested cos
- Indonesia Energy Minister: LPG to Replace
    Kerosene By 2012
- Indonesia's Pertamina to phase out 
  kerosene supply starting next year
- Avocet Mining says Osela gold drilling 
  may yield more than 500,000 oz
- "Significant" gas find sees CNOOC 
  shares soar
- Serica Energy Well Placed For Growth
- Cnooc Considers Joining Husky In 
  Gas-Field Deal
- Petromindo Headlines, Tuesday, 
  June 20, 2006

The Jakarta Post
June 20, 2006

PLN needs to invest US$7.7 billion 
on major network expansion 

The Jakarta Post, Jakarta

State-owned electricity utility PT Perusahaan Listrik Negara (PLN) needs to 
invest US$7.7 billion on expanding and upgrading its transmission and 
distribution networks.

PLN transmission and distribution director Herman Darnel Ibrahim was quoted 
by Antara as saying Monday that the expansion of the transmission and 
distribution networks was essential if the government's plan to construct new 
coal-fired power plants with a combined generating capacity of 10,000 megawatts by 2009 
were to be successful. 

"If we only construct the power plants without the transmission and 
distribution networks, the electricity will not reach the consumers," Herman said. 

He said that around $4.3 billion would be needed to expand the transmission 
network, and another $3.4 billion for the expansion of the distribution 
network. 

The government is planning to construct the new coal-fired power plants so as 
to lessen the country's dependence on more expensive oil-based power 
generation against a backdrop of soaring oil prices. 

Herman said that the construction of the new plants was ready to go ahead 
even though PLN was still in the process of seeking funding for the expansion of 
the associated transmission and distribution networks. 

Herman also said that PLN would have to built about 200 substations to 
receive the electricity from the main power lines and reduce its voltage for 
distribution to consumers. 

According to Bloomberg, PLN currently has 804 substations, of which more than 
70 percent are located in Java. 

Java depends on one main transmission line to supply companies such as PT 
Gudang Garam, the country's biggest cigarette maker, and PT Semen Gresik, its 
biggest cement maker. 

A second, called the South Line, has been mired in land acquisition delays 
and health concerns among villagers over whose homes it passes since 1996. "We 
expect this line to be completed by the end of this month," Herman said. 

The country needs to spend about $27 billion on new plants and power lines by 
2012 to meet demand, according to the World Bank. At least 47 more power 
stations and 14 high-voltage transmission lines will be required within the next 
10 years, PLN estimated last year. 

The firm made a loss of Rp 4.92 trillion (US$525 million) last year, compared 
with Rp 2.02 trillion the year before, as higher fuel prices increased costs. 

------------------------------

Indonesia temporarily postpones sale 
of Newmont's Martabe gold mine

JAKARTA, June 20 (XFN-ASIA) - The government has temporarily postponed
the tender process for Newmont Mining Corp's Martabe gold mine in
Indonesia's North Sumatra province after an eliminated bidder lodged
an objection, an energy ministry official said.

Newmont recently shortlisted PT Antam and Australian firm Agincourt
Resources out of five interested investors to bid for mine.

But one of the failing bidders, businessman Jusuf Merukh, filed an
objection with government authorities claiming that Newmont has
promised to sell the mine to him, said Mangantar Marpaung, director
for coal and geothermal development at the energy ministry.

"We sent a letter to Newmont requesting them to first settle the
problem with Jusuf Merukh," Marpaung told reporters.

In a letter to the ministry, Merukh claimed he was promised by Newmont
that he would take over the mine and that accordingly he filed a bid
of 91.75 mln usd.

Newmont is selling all of its 90 pct stake in PT Newmont Horas Nauli,
which operates the Martabe mine, for 114 mln usd. PT Austindo
Nusantara Jaya owns the other 10 pct.

The government is currently undertaking verification procedures of the
shortlisted bidders but the decision as to who will win the bid will
be left to Newmont.

Separately, Noke Kiroyan, president of Newmont's Indonesian unit,
Newmont Pacific Nusantara, said the winner of the tender is expected
to be decided next week and that Merukh should honour Newmont's
decision excluding him from the shortlist.

Kiroyan has said exploration indicates the mine holds about 3 mln
ounces of gold reserves.

-----------------------------------

Chinese seek majority stake in Indonesia's Tuban oil refinery

JAKARTA, June 19 (Asia Pulse/Antara) - Chinese investors want to have
a majority 51 per cent stake in a US$5 billion oil refinery to be
built in Tuban East Java also involving investors from Iran and
Indonesia.

Under a recent agreement, Indonesia's PT Elnusa is to own 20 per cent
of the project and National Iranian Oil Refining and Distribution
Company (NIORDC) will be a 30 per cent shareholder and the remaining
50 per cent of the shares are to be split between two Chinese
companies - China National Offshore Oil Corp (CNOOC) and China
National Petrochemical Corp. (Sinopec).

Elnusa President Rudy Radjab said the Chinese investors want the
majority stake to secure supply of the products to that country.

Negotiation is now underway with CNOOC and Sinopec to determine the
shares for the Chinese investors, Radjab said.

Construction of the project is to start in 2007 and it is to start
operation in 2010.

Radjab said a final deal is expected to be signed in August to be
ready for construction next year.

---------------------------------------

Fierce Competition in Prospect for Australian LNG

By Paul Marriott

DARWIN, June 20 (Reuters) - Liquefied natural gas (LNG) buyers around
the Pacific will look to growing regional supplier Australia to make
up for declining Asian producers in an increasingly competitive
market, a conference heard on Tuesday.

Traditional buyers from Japan, South Korea and Taiwan, lacking
indigenous gas or import pipeline infrastructure, voiced concern that
the emergence of China, India and the United States as large-scale gas
importers was draining their traditional regional sources of supply
and creating aggressive price wars.

"If this is our fate we have to take this reality," said Jane Liao,
general manager of purchasing for the Chinese Petroleum Corporation in
Taiwan. "It becomes more and more difficult to secure cargoes despite
the good relationships we have kept."

Australia is home to Asia's only new and proposed LNG projects, though
it lags far behind Indonesia as the region's largest exporter of LNG
-- super-cooled gas transported as liquid at high pressure on
specially equipped tankers -- with only its North West Shelf and Bayu
Undan projects in operation.

But as regional powerhouses Indonesia, Malaysia and Brunei see
reserves decline, only Australia has proposed significant new
projects, with local and international players finding gas in the
Browse, Pluto, Sunrise, Gorgon, Caldita and Icthys offshore fields.

Demand from South Korea, the world's second-largest importer of LNG
after Japan, was seen growing to around 50 million tonnes per annum by
2025, said GS Caltex's Mark Symons. Korea is already looking for 60
LNG spot cargoes for winter 2006 to supplement contracted supply.

And demand from Taiwan is expected to rise threefold to as much as 22
million tonnes annually by 2025, Liao said.

NEW ORDER

Indian and Chinese firms stressed the importance of gas, and notably
imported LNG, in firing their rampant economic growth and providing an
alternative to dominant coal-fired power generation that has earned
them environmental pariah status.

"Australia is ideally located to supply some of our evident LNG
needs," said SC Sharma, chief commercial officer of importer Petronet
LNG. "India is more than doubling the capacity of one import terminal
and building a second in time for 2009."

Sharma said he expected LNG demand from India to rise fourfold to
around 103 million tonnes per annum by 2012. India has already
purchased three LNG spot cargoes this summer to fuel its power and
fertiliser sectors, Sharma said.

Yufeng Yang of the Chinese Energy Research Institute predicted a
fourfold increase in Chinese gas demand to as much as 200 billion
cubic metres by 2020, of which around 40 percent, or 60 million
tonnes, would need to be imported in the form of LNG.

Yang said he saw Australia as one of a number of key potential
suppliers as China seeks to satisfy energy demand which is already
three times higher than in the early 1980s.

Larger ships and improved technologies have also brought the eastern
Pacific rim into clearer focus in recent years, with analysts
forecasting United States LNG demand could yet dwarf that of Asia,
diverting cargoes towards the Californian coast.

With domestic gas production plateauing, imports of LNG are expected
to account for 15 percent of supply by 2025, against 3 percent today,
James Slutz, deputy assistant secretary of the U.S. Department of
Energy told the conference from Washington.

A raft of proposals for import terminals off California could make
Australian LNG a viable supply source for western as well as eastern
U.S. markets, with California under-secretary for energy affairs, Joe
Desmond, forecasting annual demand growth of 0.8 percent over the next
10 years.

-------------------------------------

Indonesia's PLN expects govt to issue 
decree on new power projects this week

JAKARTA, June 19 (XFN-ASIA) - PT Perusahaan Listrik Negara (PLN)
expects the government to issue this week a presidential decree on the
so-called "crash program" to install an additional 10,000 megawatts
(MW) of power generation capacity, PLN acting president Djuanda
Nugraha Ibrahim said.

"Our hope is that the decree will be issued this week so that the
tender process can be launched as soon as possible," he told
reporters.

"My schedule is that the tender process can be completed in September
so that the project can be completed in 2009," he added.

A recent report by Bisnis Indonesia said under the crash program, PLN
plans to build 24 coal-fired power plants at a cost of 5.7 bln usd,
ten of which will be built in Java with a combined capacity of 7,140
MW.

The program aims to avert a power crisis given the rapid growth in
demand and also allow PLN to use cheaper coal fuel rather than the
more expensive crude oil to generate electricity.

Ibrahim said fuel substitution is crucial for PLN's cost efficiencies
because oil fuel cost has jumped nearly four times over the past year
while electricity tariffs have not been raised.

"Therefore, the 10,000 MW project must be implemented on schedule," he said.

He said the crash program has recently been promoted to potential
investors in the Middle East and in China.

"An investor for each energy procurement construction (EPC) should
also provide funding for the project. So, if the EPC is from China,
the funding should also come China. It is something called supplier
credit or buyer credit," he said.

On coal supply, PLN has recently shortlisted 15 coal producers in the
first stage of a selection process.

The selected coal suppliers are PT Arutmin, PT Berau Coal, PT
Beramutiara Prima, PT Surya Sakti Darma Kencana, PT Jorong Barutama,
PT Indexim Coalindo, PT Titan Mining, PT Perkasa Innakakerta, PT Tekno
Orbit, PT Maritim Coal Mining, and PT Triyani.

Four other suppliers are coal mining consortia. They are the PT
Padangbara Sukses Makmur and PT Rantau Energi consortium; the PT
Maxima Infrastructure and PT Anza Satria consortium; the PT Bayan
Resources, PT Gunung Bayan and PT Bara Tabang consortium; and the PT
Kasih Industri and PT Senamas Energindo consortium.

PLN predicts its coal demand to reach 71.9 mln tons per annum in 2009-2010.

As for this year and next year, its coal needs are estimated at 16.58
mln tons and 21.12 mln tons, respectively.

----------------------------------------------------------------

PLN to cut oil-based fuel use 19% in 2007

JAKARTA, June 19 (Bloomberg): PT Perusahaan Listrik Negara,
Indonesia's state power utility, plans to cut the use of oil-based
fuel by 19 percent next year, replacing it with coal and gas to reduce
costs.

PLN may burn 7.49 million kiloliters of oil products in 2007 compared
with 9.2 million kiloliters this year, Djuanda Nugraha Ibrahim, acting
president director of PLN, told a panel at the House of
Representatives in Jakarta on Monday.

The government is promoting the use of coal and natural gas as crude
prices soar. The state audit agency said PLN should get Rp 10.2
trillion (US$1.1 billion) of additional electricity subsidies this
year to cover rising costs without a power-rate increase.

PLN may spend Rp 43.5 trillion on diesel and fuel oil next year, 13
percent less than Rp 50.3 trillion this year, based on estimated
prices given by Djuanda on Monday.

PLN's total spending on coal, gas, and oil-based fuels may fall 4.2
percent next year to Rp 59.1 trillion as it buys more gas and coal.

Three coal-fired power plants in Java, with a capacity of 2660
megawatts, are expected to come into operation later this year.

----------------------------------------------------------------

Indonesia's PLN appoints Medco consortium 
to build Sarulla power plant

JAKARTA, June 19 (XFN-ASIA) - PT Perusahaan Listrik Negara (PLN) has
appointed the consortium led by oil and gas firm PT Medco Energi
Internasional to construct its Sarulla geothermal power project,
replacing winning bidder Geo Dipa Energi, PLN acting president Djuanda
Nugraha Ibrahim said.

"Geo Dipa has decided to pull out so PLN has appointed the
second-ranked bidder, Medco consortium, to take over," he told a
hearing with the Lower House of Parliament's (DPR) Commission VII.

He gave no further details.

The Medco-led consortium includes Japan's Itochu Corp and US-based
Ormat Technologies Inc.

Geo Dipa, jointly owned by PLN and state-run oil and gas firm PT
Pertamina, had offered to sell to PLN electricity generated by the
Sarulla plant at 4.455 US cents per kWh, lower than Medco's offer of
4.642 US cents/kWh.

Located in the North Tapanuli district in North Sumatra, the Sarulla
power plant project was first awarded to Unocal North Sumatra
Geothermal Ltd, a unit of Unocal Corp.

But due to the 1998 economic crisis, several power plant projects
including Sarulla were suspended by the government.

PLN then acquired the project from Unocal for 60 mln usd.

-----------------------------------------------------------------

Indonesia power firm says BP gas supply almost normal

JAKARTA, June 19 (Reuters) - Indonesian state electricity firm PT
Perusahaan Listrik Negara (PLN) said on Monday that British energy
firm BP Plc's gas supplies to its power plants in Jakarta were almost
back to normal after a damaged pipeline was repaired.

BP reduced its gas supplies to PLN's power plants by around 48 percent
after a ship's anchor damaged an offshore gas pipeline near Jakarta
last month.

PLN spokesman Muljo Adji said BP had increased supplies to 230 million
cubic feet a day, while normal supplies were around 250 million cubic
feet a day.

A BP official confirmed gas supplies were gradually returning to
normal after three weeks.

BP's executive vice-president, Meiti Wajong, said in an e-mail to
Reuters the company had completed the first phase of repairs on the
APN pipeline off the west Java coast.

"The APN-A and APN-B platforms have been delivering gas to customers
since June 10," she said.

BP's APN pipeline supplies gas to PLN's Muara Karang power plant,
which has a capacity of around 750 megawatts (MW), and PLN's Tanjung
Priok plant, which has a capacity of around 1,000 MW. Both are in the
capital city of Jakarta.

--------------------------------------------------------

Indonesia's PLN prequalification round 
for 6 projects draws 102 interested cos

JAKARTA, June 16 (XFN-ASIA) - A total of 102 companies have joined the
pre-qualification round to build six power plant projects for state
electricity firm PT Perusahaan Listrik Negara, PLN acting president
Djuanda Nugraha Ibrahim said.

He said PLN will select the companies qualified to proceed to the next
round, which will be the tender process, on the third week of August.

The winners are expected to be announced in December.

The projects being offered to independent power producers (IPP)
involve construction of two 600-megawatt (MW) power plants in Central
Java; one 500-MW plant in Pasuruhan, East Java; two 100-MW plants in
Bali; two 100-MW plants in North Sumatra; two 60-MW plants in East
Kalimantan; and two 25-MW plants in North Sulawesi.

The six power projects are among 91 projects offered by the government
at the first infrastructure summit last year.

------------------------------------------------------------

Indonesia Energy Minister:LPG to Replace Kerosene By 2012

JAKARTA, June 16 (Dow Jones)--Indonesia's government plans to fully
phase out domestic household use of kerosene, replacing it with liquid
petroleum gas, by 2012, a senior minister said Friday.

"LPG (consumption) is going to be increased; by 2012, the substitution
of kerosene with LPG will be complete," Energy and Mineral Resources
Minister Purnomo Yusgiantoro, told reporters.

Purnomo said that in the event of a deficit between domestically
produced LPG and local demand, Indonesia would import the needed
supply from other Asian markets, without elaborating.

The cash-strapped Indonesian government of President Susilo Bambang
Yudhoyono wants to cut the use of kerosene to reduce ballooning fuel
subsidy costs amid surging prices of crude oil on the global market.

Kerosene, which is more expensive than LPG, is the main cooking fuel
for the majority of Indonesia's 220 million inhabitants.

The substitution of kerosene with LPG will help save the government
IDR21 billion in fuel subsidies in 2006, government predictions issued
in May indicated.

Purnomo said that the gradual introduction of LPG as a cooking fuel
will cut kerosene demand by 10 million kiloliters by 2010, without
specifying whether the reduction is a cumulative total, or a one-year
target.

--------------------------------------------------------------

Indonesia's Pertamina to phase out kerosene supply starting next year

JAKARTA, June 16 (XFN-ASIA) - State oil and gas company PT Pertamina
will start phasing out the supply of subsidized kerosene next year to
cut the subsidy burden on the budget, Minister of Energy and Mineral
Resources Purnomo Yusgiantoro said.

Pertamina will gradually replace kerosene supply with liquefied
petroleum gas (LPG), such that "by 2012, the (annual nationwide)
consumption of kerosene of 10 mln kiloliters is expected to be
replaced by LPG," Yusgiantoro told reporters.

He said the move will cut the subsidy burden on the state budget by 42
trln rupiah a year.

Pertamina must supply 5.7 mln tons of LPG per year to replace
nationwide kerosene consumption, said company president Ari Soemarmo.

He said at present, Pertamina may supply 3 mln tons of the fuel and
will have to import the remainder once kerosene supply has been
withdrawn.

Kerosene is widely used among poor households.

Yusgiantoro said that to encourage the switch to LPG, the government
will provide LPG tubes to consumers for free.

LPG is sold at 4,250 rupiah per kilogram against only 2,000 rupiah per
liter of kerosene.

--------------------------------------------------------------

Avocet Mining says Osela gold drilling may yield more than 500,000 oz

LONDON, June 20 (AFX) - Avocet Mining PLC said its first-phase
resource-definition drilling at Osela in the Bakan District of
Indonesia has the potential to find 500,000 ounces of gold, above the
initial expectations announced last year.

This is the second advanced prospect in the Bakan District in the
company's 80 pct owned Mongondow Contract of Work (CoW), the other
being the Durian prospect.

Additionally, the company said the Bakan District has the potential
for a significantly larger resource than this being discovered on
account of additional mineralisation already identified.

John Catchpole, chief executive, said: 'We remain confident that the
Bakan District has the potential to host at least 500,000 ounces and
possibly much more.'

----------------------------------------------------------------

"Significant" gas find sees CNOOC shares soar

BEIJING, June 16 (Asia Pulse) - Shares in CNOOC Ltd (SEHK:0883),
China's largest offshore oil producer, rose as much as 8.6 per cent
after its Canadian partner found a natural gas field big enough to
supply China for four years.

The discovery in the Pearl River Basin is "significant" and may
contain 6 trillion cubic feet of gas, Husky Energy Inc, the
Calgary-based company controlled by Hong Kong billionaire Li Ka-shing,
said in a statement on Wednesday. That's equivalent to 7 per cent of
China's current reserves or 1.1 million tons of oil.

"The project is significant for CNOOC and we expect more such gas
discoveries as the company acquires oil assets overseas," said Liu
Yang, who helps manage US$1.8 billion of Asian assets including CNOOC
shares, at Atlantis Investment Management Ltd in Hong Kong.

China is stepping up drilling for natural gas and boosting imports of
the fuel to curb pollution from coal-fired power stations. A decade of
rampant expansion has left the country with six of the world's 10 most
polluted cities. The government plans to overcome smog that reduces
visibility in cities such as Beijing, the capital, before the 2008
Olympics.

The gas find in an area known as Block 29/26, 250 kilometres south of
Hong Kong, is the first deepwater discovery off China's coast, Husky
said. Hong Kong is a special administrative region of China,
neighbouring Guangdong Province, the nation's manufacturing hub.

Foreign partners

Under CNOOC's exploration contracts with foreign partners, the company
has a right to acquire, at no cost, as much as 51 per cent of any
discovery. CNOOC will exercise the option to take the 51 per cent
stake, spokesman Xiao Zongwei said, declining to give details.

China's oil fields have failed to keep pace with demand, which more
than doubled in a decade, accelerating the shift to gas. CNOOC in May
took delivery of China's first cargo of liquefied natural gas from
overseas. The supplies will supplement fuel transported 4,000
kilometres through PetroChina Co's West-to-East pipeline to the
commercial centre of Shanghai in the east from Xinjiang in the
northwest.

"Husky has only drilled one well and they have hit the jackpot,"
Martin Haigh, head of Asian sales trading with Cazenove Asia Ltd, said
in a report yesterday. "This is one of the most significant events in
offshore China since the area was opened in 1982."

CNOOC shares climbed 6.8 per cent to HK$5.60 at 3:58 pm in Hong Kong.
Earlier, they rose as much as 45 US cents to HK$5.70. The shares have
increased 31 per cent in the last year, compared with an 11 per cent
gain in the benchmark Hang Seng Index. Husky shares, which closed at
CN$63.20 on Wednesday, have risen 36 per cent in the last year.

The gas discovery has the potential to boost CNOOC's reserves by 10
per cent over the next two years should it be "proved up," Gordon
Kwan, director of China oil and gas research at CLSA Ltd in Hong Kong,
wrote in a note to clients yesterday. The size of the gas discovery
equates to more than 40 per cent of CNOOC's proved oil and gas
reserves, he said.

CNOOC's parent, China National Offshore Oil Corp, holds another
exploration contract in the area with Kerr-McGee Corp, a US oil and
gas company.

China's consumption of natural gas may more than double to 220 billion
cubic metres by 2020 from 100 billion in 2010, according to a November
12 report by the State Information Centre's China Economic Information
Network. Gas production may rise to as much as 150 billion cubic
metres by 2020 from 100 billion cubic metres in 2010, it said.

Separately, CNOOC's gas project in southeast Sumatra started
production with daily output of 55 million cubic feet and delivery
expected to start in early 2007, the company said on Wednesday in a
statement.

CNOOC, which produced 390 million cubic feet of gas a day in the first
quarter, is the operator of the project and has a 65.5 per cent
interest.

"Indonesia is a big gas market, as well as a big liquefied natural gas
exporter," Kwan wrote in a research note yesterday. "This project
could help cement CNOOC's position as the biggest oil producer in
Indonesia."

--------------------------------------------------------------

Serica Energy Well Placed For Growth

Edited Press Release

LONDON, June 15 (Dow Jones)--Serica Energy said Thursday that it is
well placed to generate growth for shareholders.

At the Serica AGM Thursday Antony Craven Walker, Chairman, said:
"Serica made great progress in 2005, achieving one hundred per cent
success with the drill bit and a successful listing on London's AIM
market, giving it investment community support in Europe and Canada
and a strong financial position.

"Serica's Board expects to give full project sanction for development
of the Kambuna Field, offshore North Sumatra, Indonesia in the near
future. Serica is operator of the Kambuna Field, holding a 65%
interest, and this development is integral to the Company's plan to
move its operated assets in Indonesia into the production phase and
satisfy a growing market in the region. The field is expected to come
onstream in 2008 at an initial rate of 50 million cubic feet of gas
per day and 5,000 barrels per day of condensate. The full extent of
the Kambuna Field has yet to be defined and the Company will carry out
a 3D seismic survey in 2006 to identify further extensions. This is a
major step forward for Serica and has the potential to be a material
producing asset in the medium to long term.

"As part of the development plan we intend to fast track the
development of the field using 'dry' wellheads and a Floating
Production Storage and Offtake vessel ("FPSO"), which offers
significantly lower drilling and production costs than a subsea
solution.

"We also plan to construct the infrastructure to deliver the gas to
market, and the terms of the gas sales contract are under negotiation.
We estimate there will be a gas market shortfall in North Sumatra of
around 100 to 200 mmscfd by 2010. In addition to the Kambuna field
development Serica has also submitted a Plan of Development for the
Tanjung Perling field in the neighbouring Asahan Block which Serica
also operates. We will continue to explore for additional gas supplies
to add to the Kambuna and Tanjung Perling developments with nine
prospects and leads already identified.

"With a high impact exploration programme across Indonesia and the
U.K. due to commence shortly and near term development in Indonesia on
track for first gas in 2008 Serica is well placed to generate growth
for shareholders."

The Company is also pleased to announce that all of the resolutions
set out in the Notice of Annual General Meeting dated May 21, 2006
were duly passed, without amendment, at the Annual General Meeting
held Thursday.

----------------------------------------

Dow Jones Newswires
June 20, 2006

Cnooc Considers Joining Husky In Gas-Field Deal

By JOYCE LI

HONG KONG -- Cnooc Ltd. said it hasn't decided whether to take a stake in a 
deepwater gas field jointly operated by its parent and Husky Energy Inc. of 
Canada.

Husky, controlled by Hong Kong billionaire Li Ka-shing, said Thursday it 
found gas in the South China Sea with partner China National Offshore Oil Corp., 
the parent company of Hong Kong-listed Cnooc. It is the first deepwater gas 
field discovered in China.

As part of an agreement with Husky, the Chinese firm has the right to take as 
much as a 51% stake in any oil or gas field discovered in the contract area 
and may exercise the right after the Canadian company makes commercially viable 
discoveries, Cnooc said.

Cnooc's shares jumped 5.7% Thursday and 6.3% Friday, before easing a bit 
yesterday to end at 5.85 Hong Kong dollars (75 U.S. cents) each. Analysts said the 
gas find should boost the company's output growth if it exercises its right 
to acquire shares in the project. Cnooc is China's largest offshore oil 
producer by output.

"Whether or not the company will exercise its participating interest in full 
or at all will depend on evaluations made by the company," Cnooc said. It 
added that various procedures have to be completed before production at the field 
can begin.

The block, called 29/26, is about 1,500 meters under the South China Sea, 
roughly 250 kilometers south of Hong Kong. After drilling one exploration well on 
the block, Husky said the discovery could contain four trillion to six 
trillion cubic feet of recoverable natural gas.

Husky said it plans to drill in nearby blocks where it finds hydrocarbon 
reserves with similar structures. More exploration will be needed to evaluate the 
reserves, it said.

Cnooc said the hydrocarbon potential of the area has yet to be ascertained 
and will require further verification.

------------------------------------------

Petromindo Headlines, Tuesday, June 20, 2006

Oil/Gas: 
 
- Four biodiesel plants will soon begin production
- Pertamina denies reports of fuel distribution fraud
- Tiaka field produces 277,000 barrels of crude
- Apexindo’s fleet update: May 2006
 
Mining: 

- Avocet reports positive drilling results
  in North Sulawesi
- Southern Arc to expand Indonesian 
  exploration portfolio
- Archipelago to commence N. Sulawesi 
  gold production mid-2007 

Power: 
 
- PLN needs $7.6b to expand network
- PLN’s coal and gas needs to rise 
  next year
- PLN to transfer Sarulla geothermal 
  power to Medco
 
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Joyo Indonesia News Service
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