ConocoPhillips to sell Aceh?s Block to Medco and partners

American energy firm ConocoPhillips is seeking to sell its stake in Aceh?s Block A PSC to Indonesian firm Medco Energi International Tbk and its consortium partners British firm Premier Oil Plc and Japanese firm Japex.

?It (ConocoPhillips) is in the process of selling the stake. Now lawyers are finishing the sales and purchase agreement,? an industry source told Petromindo.Com on Monday.

None of ConocoPhillips?s officials could be reached for comments on their cellphone.

The consortium acquired 50 percent non-operating interest in the block from previous owner ExxonMobil Corp. for US$51 million early last year. Following the deal, ConocoPhillips which has a 50 percent operating interest in the block said it would retain its stake in the block, but the source said the American firm has changed its mind.

The block contains undeveloped discoveries on the Alur Siwah, Alur Rambong, and Julu Rayeu fields certified as holding over 650 Bcf gross of proved and probable reserves.

The block also offers substantial exploration upside. Around 20 prospects have been identified with total prognosed unrisked reserves of 1.5 tcf gross.

The government had been pushing to have natural gas flowing from Block A by 2008-2009. (Godang)