ExxonMobil to transfer interest in CBM blocks to Sugico

By Godang Sitompul

US oil giant ExxonMobil Corp. will be transferring its entire interest in four coal-bed methane exploration blocks in South Kalimantan to its partner as part of plan to quit the Indonesian CBM industry.

Brahmantyo K. Gunawan, Head of Non-Conventional Hydrocarbon of upstream oil, gas authority SKK Migas told Petromindo.Com over the weekend that ExxonMobil Oil Indonesia (EMOI) has informed that it will transfer its entire interest in the four blocks to Transasia Energy Resources, a unit of Indonesian firm PT Sugico Graha.

Last week, Canadian CBM developer CBM Asia reported that Exxon Mobil has notified about intention to quit Indonesian CBM industry and apparently cancelled a farm-in deal with CBM Asia that would have given the latter equal interest with EMOI in the CBM blocks.

According to CBM Asia, the four blocks involved are: Barito I, Banjar I, Banjar II and Tapin blocks, where ExxonMobil and CBM Asia would have held equal interest of 35 percent, 37.5 percent, 37.5 percent and 35 percent, respectively should the farm-in deal succeed.

Earlier reports, however, said that EMOI has 49 percent in the blocks with Sugico holding the balance.

EMOI officials were not available for comments.

Editing by Alexander Ginting