Gulf Indonesia ready to sell PSC interest to Petronas

Oil and gas company Gulf Indonesia Resources said Tuesday it was ready to sell a certain percentage of its working interest in the Corridor Block production sharing contract (PSC) in South Sumatra to Malaysian oil firm Petronas in a bid to win the contract to supply natural gas to the latter.

Gulf Indonesia vice president for administrative affairs Supramu Santosa told reporters on a sideline of a seminar in Jakarta Tuesday that Petronas had asked South Sumatra PSCs that were involved with the deal to supply 300 million standard cubic feet per day to sell some of their interests to Petronas

Pertamina had also held several simultaneous talks with Petronas to gas from South Sumatra starting 2004, which would mainly come from Corridor block, which is operated by Gulf Indonesia Resources and other gas fields in the area, including the Jambi Merang block, which is operated by the joint operating body (JOB) comprising Pertamina and Spanish-Argentinean firm Repsol-YPF, and the Bentu block operated by Australian firm Santos.

?I can not speak for other PSC, but as long as Gulf Indonesia concerns, but that?s what it takes to secure the gas supply contract, we are ready to sell some of our interest in Corridor Block to Petronas on business-to-business basis,? said Supramu.

Supramu, however, refused to comment on the exact percentage of participating interest Gulf Indonesia would be willing to give up to Petronas.

Earlier, industry source told Petromindo.com that Petronas had held talks to acquire interests in several PSCs, including those that are located in South Sumatra.

Supramu further said that another round of talk with Petronas on gas supply would be held in a couple of few days. (alex/godang)