Govt gives C. Java 10% interest in Muriah block
W. Java officially receives 10% interest in ONWJ block
Thursday, August 20 2015 - 02:12 AM WIB
Minister of Energy and Mineral Resources Sudirman Said officially handed over the 10 percent PI in the block to the provincial administration on Wednesday, along with a 10 percent PI in the ONWJ block to the West Java administration. The ministry said in a statement obtained Thursday that a ministerial decree on city gas network was given to state-controlled gas distribution firm PT PGN Tbk at the same ceremony.
The ministry first announced its decision to allocate 10 percent PI in ONWJ block to West Java earlier this month.
Muriah is 100 percent owned by Petronas Carigali. The offshore Kepodang gas field in the block is projected to start operation in the fourth quarter this year with an initial volume of 60 mmscfd and peak volume of 120 mmscfd. The gas will be channeled to state-owned power firm PT PLN via pipeline through Central Java mainland.
No details, however were provided in the Thursday statement on how the transfer of the PI will affect the existing shareholders of ONWJ block, which operated by PT Pertamina Hulu Energi (PHE).
The existing contract over the ONWJ block will expire in 2017. The government has recently extended the contract with PHE, the operator of the block, obtaining a greater stake of 73.5 percent (from 58.25% previously), while IDX-listed PT Energi Mega Persada Tbk?s (EMP) interest down to 24 percent from 36.75percent, and PT Risco Energy ONWJ Ltd (Kupfec) 2.5 percent.
The interest of the aforementioned shareholders in the ONWJ block will be reduced to accommodate the 10 percent allocation for West Java. As reported previously, PHE will allocate 7.35 percent interest, EMP 2.4 percent, and Kupfec 0.25 percent.
Director for Oil and Gas Upstream Management at the Ministry Djoko Siswanto, however, said August 4 it has yet to be decided whether Kupfec will also be required to reduce its interest.
Editing by Reiner Simanjuntak