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The Attaka oil field is located 12 to 15 miles off the coast of East Kalimantan, northeast of the Mahakam River delta. The field is wholly contained within an 112 square mile operating unit jointly held by Union Oil Company of Indonesia and Japex Indonesia. The unit, first of its kind in S.E. Asia, was formed in April 1970 to allow mutual exploration of a structure straddling the common boundaries of the two companies. As early seismic structure maps had delineated roughly equal areas of closure within both companies' production sharing contract areas, each company agreed to contribute approximately equal and contiguous portions of their respective PSC areas to the common unit. Under terms of the agreement all costs of exploration, development and production are to be borne equally by- the two companies and Union is designated as operator.