BP says no longer has interest in North Arafura

By Febry Silaban

UK giant BP plc has divested its entire stake in North Arafura PSC onshore West Papua to Indonesian company PT Indoland Anugerah Abadi.

BP President for Asia Pacific Region William Lin said that the deal was reached in mid-2013 and was approved by Ministry of Energy and Mineral Resources in October and by SKKMigas the following month. He added that the terms of the agreement are confidential.

BP issued a statement in July 2013 about divestment of the block to Indoland but did not give further details including the percentage of the divestment.

Indoland is part of the Mandiri Oil Group, which reports said to have close link to the current ruling government.

BP was awarded a 100 percent interest in the North Arafura oil and gas PSC in Papua in November 2010.

The North Arafura PSC is located on the coast of the Arafura Sea, 480 kilometers southeast of the BP-operated Tangguh plant, covering an area of just over 5,000 square kilometers.

Editing by Alexander Ginting