Inpex to sell stake at Java blocks to Pertamina

Japan?s firm Inpex Corp. is in talks to divest its non-operating interest at two offshore blocks in western part of Java to state oil, gas company PT Pertamina (Persero), a source said on Thursday.

Pertamina wants to buy Inpex Java?s 13.1 percent stake in the Southeast Sumatra (SES) PSC, and its 7.3 percent stake in the Offshore Northwest Java (ONWJ) PSC, the source said on Thursday.

During first half of 2010 SES produced 59,000 boepd. This year the block is targeted to produce around 62,000 boepd. Other participants in SES block including CNOOC (36 percent, operator), KNOC Sumatra Ltd (8.91 percent) and Salamander Energy (5 percent).

The ONWJ block is currently producing 27,000 barrels of oil per day and 215 BBTUD of gas, which is being sold to pipeline to customers such as state electricity firm PLN, state fertilizer firm PT Pupuk Kujang and state gas distribution firm PGN. The block is operated by Pertamina unit PT Pertamina Hulu Energi which has 46 percent interest.

Other participants in ONWJ block are: CNOOC (36.72 percent), Talisman Energy (5 percent) and Orchard Energy (5.03 percent). (bernard)