Energi Mega wants to have participating interest in ONWJ block
Wednesday, April 19 2017 - 04:02 AM WIB
The paper quoted EMP Head of Investors Relations Herwin W. Hidayat as saying that the company has already expressed its intention to have a participating interest in the block, and is currently waiting for a government decision including on the size of interest it can have. ?We?re waiting for the government decision,? he said.
The government on January 18 signed a new production sharing contract for the ONWJ block following the expiry of the previous contract, transferring the entire block to PT Pertamina Hulu Energi (PHE) ONWJ, an indirect subsidiary of state-owned oil and gas firm PT Pertamina. The government has said that PHE ONWJ is allowed to have partner in developing the block.
Under the previous contract, PHE ONWJ as the operator owned a 58.27 percent interest in the ONWJ block in West Java, while Kuwait Foreign Petroleum Exploration Company (Kufpec) owned 5 percent interest, and PT Energi Mega Persada (EMP) had more than 36 percent.
Meanwhile, Deputy Minister of Energy and Mineral Resources Arcandra Tahar said that the government will let Pertamina decide on who it will take as partner in developing the ONWJ block. ?It will be based on business to business mechanism,? he said.
Pertamina Upstream Director Syamsu Alam said that EMP wants to have a 25 percent participating interest in the ONWJ block. But he did not specifically said whether the company will ask EMP to become its partner in the block. (*)