Infrastructure Developments Corp. Signs Management Agreement for Major Oil Sands Field in Indonesia
Infrastructure Developments Corp. (OTCBB:IDVC)
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Today : Wednesday 20 October 2010
Infrastructure Developments Corp. (OTCBB: IDVC) announced today that its subsidiary, Intelspec LLC, has signed a memorandum of agreement to manage the development and/or disposition of a large oil sands concession in Indonesia. The agreement is structured as a profit sharing arrangement that provides Infrastructure an opportunity to manage the sale or lease of the 2,000 hectare project, as well as the right to overall management of the development concession in the future.
The initial soil testing and surveys completed by independent parties indicate up to 60% bitumen content, qualifying the area, located in South Sulawesi, Indonesia, as an oil sands field. The yield of pure bitumen could reach to hundreds of millions of barrels. Bitumen is commonly used in the construction of roads and highways and can be refined into petroleum products.
Infrastructure has an existing presence in Indonesia, with the recent award of a design build contract by the U.S. Navy and proposals being made on other projects in Indonesia and East Timor. The project awarded to Infrastructure in September 2010 starts construction in November 2010. In addition to its U.S. Military project proposals in Asia, Infrastructure is also negotiating for its involvement in other oil, gas and construction projects in Africa and the U.S. Discussions are currently underway between Infrastructure and companies holding concessions in the Marcellus Gas Shale field in West Virginia and Pennsylvania, for supply and management contracts.
"Our new contract with the owners of the Indonesian oil sands concession fits in well with our other activities," said Thomas R. Morgan, CEO of Infrastructure. "We have contract project managers on the ground in Indonesia, and we are in contact with oil and gas companies investing in the country. We believe that we can put the right partners together to develop the Indonesian oil sands project. We are also excited about the new opportunities that are developing in the U.S. for our supply and management services in the Appalachian Basin oil shale region."
There has been a surge in recent months of foreign oil companies from China, Norway, Canada and many other countries investing in explorations stage projects around the world. Infrastructure has a U.S. base, with an international spread of project managers and contract officers that have worked in difficult and remote environments all over the world. The Company feels it has an international advantage in being able to introduce interested parties to oil and gas ventures in countries such as Indonesia.
