Amerada, Petronas eye interest in ConocoPhillips

Amerada Hess and Petronas Carigali will likely take over the working interest of ConocoPhillips both in Pangkah and Ketapang PSC, Bisnis Indonesia reported Monday.

Amerada's vice president for government and external affairs, Artis Waluyono said in Jakarta over the weekend that a negotiation on the possible takeover of ConocoPhlillips' interest in Pangkah PSC was underway.

"We are still negotiating to take over the interest of Conoco in the Pangkah PSC. The decision will be soon made by our headquarters," he said.

In Dec 2004, Amerada signed a 20 years gas supply contract with state-owned electricity firm PT PLN for the supply of 100 million cubic feet per day (gross) gas from the block?s Ujung Pangkah field which is estimated to have gas reserves of about 440 billion cubic feet.

Ujung Pangkah field is part of The Pangkah PSC operated by US oil firm Amerada Hess.

Amerada Hess holds a 78 percent working interest in the Pangkah PSC, while the remaining is held by ConocoPhillips.

Meanwhile, Achmad Lutfi, deputy chairman for planning at oil and gas regulator BPMigas, also confirmed last week that Petronas was also interested in buying the working interest of its partner ConocoPhillips in Ketapang block, offshore East Java.

The block?s Bukit Tua field is expected to commence production with 20,000 BPD rate in late 2008. ConocoPhillips has 50 percent interest in the block with the balance held by Petronas

"Petronas has since last week been conducting a study to buy Conoco's interest in the block," he said.

"Amerada and Petronas as the working partners of Conoco in the two oil blocks have emptive right to buy its interests," Lufti said. "The two companies have 90 days to decide whether or not to takeover the working interest to be divested by Conoco," he added. (*)