Exxon Mobil (XOM)
plans to drill three exploratory wells in an Indonesian offshore oil block over the next three years, a company official said on Wednesday.
Exxon Mobil signed an oil contract with the Indonesian government last
month 2,062 sq mile of the offshore Surumana block in the Makassar Straits.
The government had said that in the case of Surumana, any oil find would be split 65:35 percent between government and contractor. Meanwhile, any gas find would be split 60:40 percent.
Officials say Indonesia still
has around 4.1 billion barrels of proven oil reserves and about 4.5 billion barrels in potential reserves.
Currently Exxon Mobil has several oil and gas working areas in Indonesia, including in Cepu block on Java island.
The Cepu block is Indonesia's biggest oil discovery in decades and should boost the country's output by a fifth once production begins in late 2008.