US Offers Investment in Oil
Tuesday, 03 April, 2007 | 15:51 WIB

Tempo Interactive, Jakarta: US oil and gas company Powder River Basin Gas Corp (PRVB) has offered Indonesia to invest in a retail scale oil exploitation and manufacturing project in Saltdome, Texas, the US.

In order to gain ownership rights which takes the form of a working interest, every investor should minimally invest US$10 thousand. PRVB, the project owner, joining with OilPods International, has offered similar bids to Singapore, Malaysia and, being planned, Hong Kong.

Anwar Eddy Hartono, Country Representative of PT Berkat Lestari—partner of OilPOds International in Indonesia— said that the investment will be a usual business. “It is unique because it involves the oil and gas sector,” said Anwar in Jakarta, last week.

He explained that investors' capital will be returned entirely after two to three years of investment. The payment will be gradually paid up every month, taken from the produced crude oil and gas selling. Within 12 and 15 years of oil-producing, investors will still receive proceeds.

The amount of restitution that investors will receive depends on the world oil price and production. As an illustration, with the oil price of US$40 dollar per barrel, investors will acquire 2.8 percent per month of the investment value. While earnings that will be received will reach 1.5 percent of the investment value.

Investment in the project will not violate the law. Investors will be issued ownerships certificates by a local court. “In the US, the land owner has the right to oil and gas,” said Anwar. The project is also accurately guaranteed because the exploration will only be aimed at productive wells.

Harun Mahbub
_________________________ Indonesian Business and Investment News Aggregator