BP sells interest in Sanga-Sanga block to Saka Energi

BP Indonesia has sold its entire interest in the Sanga-Sanga block, East Kalimantan, to PT Saka Energi Indonesia, a subsidiary of IDX-listed gas distribution firm PT PGN Tbk.

BP, through BP East Kalimantan Ltd, owned a 26.25 percent interest in the Sanga-Sanga block.

This was said by Country Head of BP Indonesia, Dharmawan Samsu, on Tuesday, but did not disclose the value of the transaction. He said that the Sanga-Sanga block no longer fits with the company?s long-term strategy.

Other investors in the Sanga-Sanga production sharing contract, which is set to expire in 2018, are Lasmo Sanga Sanga Ltd (26.25 percent), Virginia International Co. (15.625 percent), Virginia Indonesia Co. (7.5 percent), Opicoil Houston Inc. (20 percent), and Universe Gas & Oil Company Inc. (4.37 percent).

Dharmawan said that while his company was backing down from the Sanga-Sanga conventional block, it retains its interest in the Sanga-Sanga CBM block. The contract over the block will expire in 2039.

The Sanga-Sanga CBM PSC was awarded on Nov. 30, 2009. Participants of the block are BP East Kalimantan CBM Ltd (26.25 percent), ENI CBM Ltd (26.25 percent), Virginia International Co. CBM Ltd. (15.625 percent), Virginia Indonesia Co. CBM Ltd. (7.5 percent), Opicoil Houston Inc. (20 percent), and Universe Gas & Oil Company Inc. (4.37 percent).

Editing by Reiner Simanjuntak