BP in talks sell E. Java block

Anglo-American energy giant BP Plc is in talks with a number of companies to sell its interest in Kangean gas block in East Java, an industry source told Petromindo.com on Friday.

According to the source, BP has had a talk with some of local companies and multi-nationals operating in Indonesia.

Another source said interested companies include Medco Energi Internasional, Star Energy, and PetroChina.

BP is considering to sell assets in Indonesia, including interests in Java oil and gas blocks, to focus on the development of the Tangguh LNG project in Papua.

BP is currently trying to get early extension in Kangean block, to enable it to develop Terang-Sirasun gas field, which is estimated to have 1 TCF of gas reserves. BP's contract on Kangean will expire in 2010. The block also has Pagerungan gas field, which is now producing at declining rate.

BP has a 100 percent interest in Kangean block. (Alex)