Energi Mega Persada interested in Aceh's Block A
Monday, June 27 2005 - 03:42 AM WIB
?If they (the owners of the block) are selling, we will be interested to buy. So far they haven?t offered anything,? Energi Mega?s CEO Chris B. Newton said on Monday.
The block is jointly owned by American energy firm ConocoPhilips and ExxonMobil Indonesia with the former as the operator.
The government has pushed Conoco to start developing the field to solve gas shortages in the province.
Conoco is reportedly planning to pull out from the block as the government refused to meet its request for a higher revenue split from the block. The government wants 52 percent of the gas production and the remaining 48 percent for Conoco. But Conoco demands a 50:50 production split. According to Conoco, the production activities at the filed will be more costly because the gas in the area has a high CO2 content.
Coordinating Minister of Economy Aburizal Bakrie recently confirmed that Conoco and Exxon would pull out from the block.
The field?s gas output is expected to cope with the shortage of gas supplies to the Arun LNG plant and two fertilizer producers PT Pupuk Iskandar Muda and Aceh Asean Fertilizer. (Alex)