Eni divests interest in East Sepinggan block
Wednesday, February 25 2015 - 12:33 AM WIB
Italian firm Eni SpA has reached an agreement with PT Pertamina Hulu Energi (PHE), a subsidiary of state owned oil and gas firm PT Pertamina (Persero), to sell a 15 percent interest in East Sepinggan PSC to the latter.
?We have approved of Eni's divestment of East Sepinggan offshore block to PHE," Director for Oil and Gas Upstream Management at Ministry of Energy and Mineral Resources Naryanto Wagimin told Petromindo.com.
PHE's Corporate Secretary Wahidin Nurluzia confirmed that his firm has received the approval from the ministry for farming into the block.
They did not provide in details about the value of divestment.
Eni was awarded the production sharing contract for East Sepinggan block in July 2012. So now the firm as operator holds a 85 percent interest in the block, while the remaining interest is owned by PHE.
Eni has made an important gas discovery in the Merakes exploration prospect in the block, preliminarily estimated at 1.3 tcf of gas in place. Merakes is the first exploration well drilled by Eni.
The East Sepinggan block is located close to two major gas projects in Muara Bakau block, namely Jangkrik (JKK) and Jangkrik North East (JNE). The Muara Bakau block is 55 percent owned and also operated by Eni.
Editing by Johannes Simbolon