Dozens of firms bid for ExxonMobil?s stake in Block A

ExxonMobil Oil Indonesia (EMOI) has accepted proposals from many foreign and local companies to purchase the former?s 50 percent stake in the natural gas-rich Block A in Aceh.

?There were more than 10 bid proposals coming to us,? EMOI?s vice president of external relations Maman Budiman said on Thursday.

He did not specify all the bidders but said they included local firms Medco Energi International and Energi Mega Persada.

EMOI expects the farm-out process to be completed in the first quarter of next year, according to Maman.

EMOI, the subsidiary of American energy giant ExxonMobil, has a 50 percent stake in the block, which is believed to contain at least 500 billion cubic feet of gas reserves. The other 50 percent is owned by American firm ConocoPhilips, which also seeks to divest its stake in the block.

ConocoPhilips, however, wants to divest the stake through a swap mechanism, through which the American firm expects to obtain stake in oil and gas blocks in return for its stake in Block A. Both Medco and Energi have voiced interest in the swap mechanism.

Meanwhile, Maman also confirmed that EMOI was among the oil majors that are competing for the Pasang Kayu block in the Makassar Straits.

Earlier a source said there were eight international companies are competing to grab the concession. They are ExxonMobil, ConocoPhillips, Marathon Oil Corp., Anadarko Petroleum, Anglo-Dutch giant Shell, Italy?s ENI SpA, Canada?s Talisman Energy and Malaysia?s Petronas.

The acreage is part of the concessions being offered by the government in this year?s last auction of oil and gas blocks. Government is expected to announce the winners of the auction sometime this month. (godang)