Anadarko to sell RI assets due to bureaucratic hurdle

By Godang Sitompul

US oil and gas firm Anadarko Petroleum Company has decided to farm out its oil and gas assets in Indonesia due to worsening investment climate, according to a source.

The source told Petromindo.com Monday that Anadarko was particularly discouraged among others by the lengthy bureaucratic procedure and the fee requirement in obtaining the necessary permit for exploration work.

Anadarko, the source, added is now looking at developing oil and gas assets in Mozambique, North Africa, which promises better investment climate.

Anadarko holds interests in several exploration blocks in Indonesia including 35 percent in Nunukan PSC, where it has discovered oil and gas and 35 percent in Popodi PSC. Both blocks are located offshore East Kalimantan.

The company said it plans to sell its interest in the Nunukan PSC. Deputy for Planning at upstream oil and gas authority BPMIGAS, Widiyawan Prawiraatmadja said that Anadarko has yet to decide on who will buy the 35 percent stake in the Nunukan PSC. ?They (Anadarko) have said that there are two serious interested buyers for the assets.?

Editing by Reiner Simanjuntak