Hess plans to quit S. Sumatra gas block

US firm Hess Corp is planning to sell its stake in Jambi Merang JOB Block onshore South Sumatra, a senior official with upstream oil, gas authority BPMIGAS said on Monday.

Deputy Chairman Achmad Luthfi told reporters that Hess is planning to sell its entire 25% stake at the block, which is slated to start gas production in 2010.

HK-based Pacific Oil& Gas, which is controlled by Indonesian tycoon Sukanto Tanoto is also planning to sell its 25 percent stake in the block. The remaining 50 percent interest is held by state oil and gas company PT Pertamina.

Pertamina VP Business Development Gunung Sardjono said that the company is currently evaluating the economics of increasing interest in the block.

The block is scheduled to commence production in 2010, with peak production of 120 MMCFD of gas and 12,000 BPD liquids reached one year after. Gas from the block will be piped to PLN?s power plant in Java. (godang)