BP may shed Indonesian assets: Source

Anglo-American oil and gas giant BP Plc. may shed some of its Indonesian assets in a bid to restructure its Asian business, an industry source said.

“BP is considering to sell Indonesian assets, including interests in Java oil, gas blocks and to focus on the development of Tangguh LNG project in Papua and petrochemical business,” the source said. The source said the plan was part of BP’s global business strategy in Asia, in which the company will raise cash to strengthen its presence on retail and petrochemical expansion in China and to focus on Tangguh LNG project.

Early this year BP sold its stake in PetroChina and Sinopec for US$ 2.4 billion. BP had also sold its interest in Singapore refinery for $140 million to Singapore Petroleum Co. and is the process of selling its gasoline station chains in Malaysia and Singapore.

BP is currently the operator of Offshore North West Java Sea (ONWJ) block in West Java with 46 percent working interest, Kangean block PSC offshore East Java (100%), Muriah PSC, East Java (100%), Bawean PSC, East Java (55%), and co-venturer in Sanga-Sanga PSC in East Kalimantan.

The source said BP had been in talks with several companies about the asset disposal.

The source said the move was in line with BP’s decision to streamline its Indonesian operations. With the commencement of Tangguh LNG project, BP is going to be very busy in Indonesia for years to come. So, it is only logic that they want to sell what they consider as “non-core” assets such as ONWJ oil, gas field, which is already a maturing block with little or no upside potential, the source said. Eventually, said the source, BP would also seriously consider to sell its smaller size assets in East Java.

BP Indonesia, however, said that BP thus far had no plan to shed its Indonesian assets. “We are working hard to develop Tangguh LNG project, but that doesn’t mean we are going to sell other Indonesian assets,” said BP Indonesia senior official Lukman Mahfoedz on Thursday. (godang)