CNOOC to complete Repsol-YPF Indonesia takeover by October: Report

China's offshore oil and gas producer CNOOC Limited will complete its takeover of Repsol-YPF's upstream operations in Indonesia by October this year, Platts news reported Saturday.

CNOOC in April 2002 sealed its purchase of Repsol-YPF's interests in five oil and gas properties in Indonesia effective Jan 1, 2002 for US$585 million in cash plus a $6.86 million oil price adjustment payment.

Platts quoted a company source as saying that Repsol-YPF and CNOOC are currently in a transition period for the handover. "We expect CNOOC to complete the takeover in October."

Whether CNOOC will make any changes in the marketing of the Cinta and Widuri crudes pumped by the former Repsol-YPF fields will be known only after October, he added.

Apart from domestic consumption by state Pertamina's refineries, the two grades have a ready market in both China and Japan.

Combined total output of Cinta and Widuri currently averages between 110-115,000 barrels per day (BPD), the source said. This is a fresh drop from levels of around 125,000 BPD seen since the beginning of last year.

In 1999-2000, Cinta and Widuri averaged an even higher 140-150,000 BPD, Platts records show. The decreases came on natural decline from aging fields, and a reduction in the production quota assigned by Pertamina. The breakdown for the individual grades was not available, but Widuri accounts for roughly two-thirds of the output.

CNOOC bought five of Repsol- YPF's seven properties put up for sale: Offshore North West Java (36.72 percent); South East Sumatra (65.34 percent); West Madura (25 percent); Poleng (50 percent) and Blora (16.7 percent). Two exploration blocks onshore South Sumatra remain with Repsol-YPF: Jambi Merang and South Sokang. (*)