ConocoPhillips rumored to sell interest in Kakap block

US oil company ConocoPhillips is in negotiation to sell its interest in Kakap PSC block, offshore West Natuna, an industry source said Thursday.

The source, however, decline to reveal further detail about the negotiation, but saying three more blocks operated by ConocoPhillips are being offered for sale.

ConocoPhillips Indonesia official AR ?Dudung? Natanegara also decline to comment on the issue.

ConocoPhillips is the operator of Kakap PSC with 31 percent working interest. The block is a gas producing block which supplies gas to Singapore through pipeline. Other interest holders are Novus Petroleum with 25 percent, Premier Oil (18.75 percent), SPC (15 percent) and Pertamina (10 percent).

The block is taken by Conoco Inc. through acquisition of operator Gulf Indonesia Resources in 2002. Conoco and Phillips Petroleum then merged to form ConocoPhillips.

The Wall Street journal reported in November that ConocoPhillips is aiming to raise US$ 2 billion from the sale of Indonesian E&P assets.

An industry analyst said with current size of ConocoPhillips, it was only logical that the company will dispose non-core assets, especially smaller ones.

?I think, with the current size, the company will eventually let go of smaller assets and would concentrate in big ones such as Corridor Block onshore South Sumatra, and West Natuna Block B offshore West Natuna,? said the analyst. (godang)