Hess expected to conclude divestment process before year-end

By Godang Sitompul

Upstream oil and gas authority SKK Migas said that it has yet to receive progress report on US oil and gas firm Hess Corporation?s plans to divest its oil and gas assets in Indonesia. A source, however, said that Hess is expected to announce the winning bidders for its assets before the end of this year.

?Until now, SKK Migas has yet to receive the report on the divestment process,? Head of Public Relations at SKK Migas, Elan Biantoro told Petromindo.com Tuesday. He said that his office has no information on the progress of the farm out process.

Hess is divesting its assets in Indonesia, part of the company?s strategy to divest oil and gas assets in various countries as it aims to focus on its US operation. According to the Oil and Gas Book 2013 published by Petromindo, the firm is the operator in four blocks, namely Pangkah PSC, in which it has a 75 percent stake, Semai V PSC (100 percent), South Sesulu PSC (100 percent), and Offshore Timor Sea I PSC (100 percent).

It also owns non-operator stakes in another three blocks, namely Natuna Sea Block A PSC (23 percent), Kofiau PSC (42.5 percent) and West Timor PSC (49 percent).

A source told Petromindo.com that Hess has already closed receiving bid documents for the assets. It has now entered due diligence process. ?The hope is that before the end of the year, we?ll know who will be eligible to acquire the assets,? the source said.

This portal reported in July, quoting a source, that four companies including Saka Energi, Sinochem, Pertamina and Mandiri Oil have passed pre-qualification process in the bid to acquire the Hess assets.

Editing by Reiner Simanjuntak