Kufpec shares in ONWJ block to be distributed to PHE, EMP

The Ministry of Energy and Mineral Resources has decided to distribute the shares of Kuwait Foreign Petroleum Exploration Company (Kufpec) in ONWJ block, West Java, to other members of the partnership when it renews the current production sharing contract of the block next year.

According to Senior Vice President for Upstream Strategic Planning and Operation Evaluation at state-owned oil and gas firm PT Pertamina ,Meidawati, as quoted by Katadata.co.id, the ministry has decided to distribute 1.5 percentage point of Kufpec 2.5 percent shares in OWNJ block to PT Pertamina Hulu Energi (PHE), a subsidiary of Pertamina, and the remainder 1 percentage point to IDX-listed PT Energi Mega Persada (EMP).

But Director for Upstream Management at the ministry, Tunggal, declined to comment as the decision over the Kufpec shares issue has yet to be signed by the minister. ?It has yet to be signed, it is still confidential,? he told the news portal on Thursday.

As has been previously reported, Kufpec has decided to no longer participate in the ONWJ block after the current contract expires because under the planned renewal of the block?s contract, the company?s participating interest will be reduced from the current 5 percent to 2.5 percent.

Meanwhile, the interest of PHE, as operator, will be increased from the current 58.27 percent to 72.5 percent, while the interest of EMP will be cut down from 36.72 percent to 24 percent. (*)