E. Kalimantan state firm demands stake in Sanga-sanga block
Friday, June 26 2015 - 01:12 AM WIB
PT Migas Mandiri Pratama (MMP), a regional state-owned enterprise of East Kalimantan Province, has submitted proposal to the Ministry of Energy and Mineral Resources, demanding a participating interest in the the Sanga-Sanga block in East Kalimantan which expires in 2018.
Previously, the company has also filed a request with the ministry a request for a stake in Attaka block which expires in 2017. If the government agrees on the demand, it will the third oil and gas block in which the newly-established firm has a participating interest. The firm already got assurance it will get a participating interest in the Mahakam block, but the amount of interest is still being discussed between the firm and state owned oil and gas firm PT Pertamina. The government has awarded 70 percent of interest in the block to Pertamina and MMP.
MMP?s President Director Hazairin Adha told Petromindo.com that his firm will seek to enter into any blocks which will give them a good profit.
This portal reported earlier that state owned oil and gas firm PT Pertamina has sent a letter to the Ministry of Energy and Mineral Resources where it expressed intention to take over the block after the expiry of the current contract. PT Saka Energi Indonesia, a subsidiary of state owned firm PT Perusahaan Gas Negara (PGN), is also reportedly interested in the block, is even seeking to farm into the block before the expiry of the contract.
Early this month, Director General of Oil and Gas IGN Wiratmaja Pudja said that he supported Saka Energi?s farm-in plan.
Participants of the block are BP East Kalimantan Ltd (26.25 percent), Lasmo Sanga Sanga Ltd (26.25 percent), Virginia International Co. (15.625 percent), Virginia Indonesia Co. (7.5 percent), Opicoil Houston Inc. (20 percent), and Universe Gas & Oil Company Inc. (4.37 percent).
Editing by Johannes Simbolon