Four firms compete for Conoco?s stake in Natuna block
Wednesday, December 23 2015 - 12:58 AM WIB
ConocoPhillips Indonesia has shortlisted four companies as potential buyers of its interest in South Natuna Sea Block B PSC in Natuna Sea, Riau Archipelago province.
The four companies are PTT EP Thailand, Ophir Salamander, PT Saka Energi Indonesia and Inpex Corp.
?Due diligence has been completed. Bidders have been shortlisted to four. The sales of the interest is expected to be signed in the first quarter of 2016,? an industrial source said.
When asked for conformation, Conocophillips Indonesia?s VP Development and Relations Joang Laksanto refused to comment. ?We shall announce it at the right time,? he said.
ConocoPhillips Indonesia operates the block with 40 percent interest. Other US oil major Chevron Corp. has 35 percent interest with the balance held by Japanese firm Inpex.
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
The block is one of the two main upstream producing assets owned by the company in Indonesia. The other one is Corridor block B PSC onshore South Sumatra.
Editing by Johannes Simbolon