Elnusa eyes Kangean block

State oil and gas company Pertamina has confirmed that its subsidiary PT Elnusa had submitted bid to buy Anglo-American BP PLC?s stake in the Kangean block in East Java.

Pertamina?s president Ariffi Nawawi said Pertamina had no reservations about the move.

?The board of directors has given its approval. Please, go ahead as long as it is financially capable (of purchasing the stake),? Ariffi was quoted by Bisnis Indonesia on Tuesday.

According to Ariffi, the block is quite attractive for acquisition as the block?s fields, Terang Sirasun and Pagerungan, have significant gas reserves and a pipeline network has been in place to deliver to the gas to buyers.

?It will be quite profitable, if Elnusa has a stake in the block,? he said.

The block is wholly owned by BP.

Aside from Elnusa, local firms PT Medco,PT Energi Mega Persada and Chinese firm China National Offshore Oil Corporation (CNOOC) are also interested in the stake. (*)