ConocoPhillips to shed Indonesian asset
Thursday, August 6 2015 - 09:44 AM WIB
US oil, gas firm ConocoPhillips is in the process of farming out interest in the South Natuna Sea Block B PSC, an offshore producing oil, gas field offshore Sumatra.
"Plan to farm out of Block B has been approved by SKK Migas," an official with upstream oil and gas authority SKK Migas told Petromindo.com on Thursday.
According to the official, the company?s partners will have priority to acquire the block.
ConocoPhillips through its Indonesian unit ConocoPhillips Indonesia operates the block with 40 percent interest. Other US oil major Chevron Corp. has 35 percent interest with the balance held by Japanese firm Inpex Corp.
According to the ConocoPhillips? website, its net production from the block in 2014 was 29,000 BOEPD including crude oil (5,000 BPD), gas (117 MMCFD) and natural gas liquid (4,000 BPD).
The block was awarded in 1968, and first production came on line in 1979, with expiration scheduled in 2028.
Natural gas produced from the block is sold to Singapore and Malaysia through two long-term contracts via the West Natuna Transportation System Gas Pipeline
The block is one of the two main upstream producing assets owned by the company in Indonesia. The other one is Corridor block B PSC onshore South Sumatra.
Editing by Reiner Simanjuntak