Investors indifferent towards Eni?s Krueng Mane block

By Bernard Loebs

Italian firm Eni Spa hasn?t thus far received any serious inquiries over its farmout offer of interest in Krueng Mane PSC in Aceh, a source said.

Aside from the low oil and gas prices, investors are apparently discouraged from taking the offer due the government?s policy of cutting gas selling price for domestic industries, the source said.

The size of the reserve and the block?s location could also be discouraging factors, the source said. The block has only around 600 bcf of gas reserve and is located 100 km inland from the seashore.

?There isn?t yet request from any company, including Pertamina to open data room. As far as I know, Pertamina usually offer asset swap if it wants to farm in,? the source said.

Eni has been offering its interest in the block since last year. In last November, this portal quoted Director General of Oil and Gas IGN Wiratmaja as saying that the government will offer Eni?s interest to state owned oil and gas firm PT Pertamina.

Eni has an 85 percent interest in the block with the balance held by South Korean firm KOGAS.

Editing by Johannes Simbolon