Firms express interest in South Natuna Sea Block B

By Godang Sitompul

State-owned oil and gas firm PT Pertamina, IDX-listed integrated energy company PT Medco Energi Internasional Tbk, and Premier Oil are among of a number of companies which have expressed interest to acquire the 25 percent interest of PT Chevron Pacific Indonesia in the South Natuna Sea Block B PSC, offshore Sumatra, a source said to Petromindo.com.

The source did not provide further details.

Chevron informed the government last year of its plan to divest the 25 percent interest in the South Natuna Sea Block B PSC as the company wanted to focus on the Indonesia Deepwater Development (IDD) project, in the Makassar Strait, East Kalimantan.

ConocoPhillips, the operator of the Block B PSC with a 40 percent interest, is also in the process of farming out its interest in the offshore producing oil and gas field. Inpex Corp owns the other 35 percent interest in the block.

This portal reported in May that Medco and PT Saka Energi Indonesia, a subsidiary of IDX-listed state owned gas distributor PT Perusahaan Gas Negara Tbk, have been selected as preferred bidders for ConocoPhillips Indonesia? stake in the block.

According to the ConocoPhillips? website, its net production from the block in 2014 was 29,000 BOEPD including crude oil (5,000 BPD), gas (117 MMCFD) and natural gas liquid (4,000 BPD).

The block was awarded in 1968, and first production came on line in 1979, with expiration scheduled in 2028.

Natural gas produced from the block is sold to Singapore and Malaysia through two long-term contracts via the West Natuna Transportation System Gas Pipeline.

Editing by Reiner Simanjuntak