KUFPEC takes over ConocoPhillips? interest in Pangkah block

Kuwait Foreign Petroleum Exploration Co (KUFPEC) has completed the acquisition of ConocoPhillips (Pangkah) Ltd., a wholly owned subsidiary of ConocoPhillips, which holds a 25 percent participating interest in the Pangkah block located in the East Java Sea, for USD 330 million, Kuwait?s national news agency KUNA reported on Monday.

KUFPEC Board Chairman Bader Al-Khashti told KUNA the Pangkah block covers an area of 784 square kilometers in the prolific East Java Sea and contains the Ujung Pangkah oil and gas field, where hydrocarbon production commenced in April 2007.

Al-Khashti added that gas production is currently over 60 mmscfd, and is expected to rise to a plateau of 100 mmscfd. Oil production is expected to commence in 2009, rising to a peak of 25,000 bopd.

The Ujung Pangkah field holds estimated gross recoverable resources of 170 mmboe. The block is operated by the Hess Corporation, who holds a 75 percent participating interest.

KUFPEC now holds participating interests in five production sharing contracts in Indonesia. The acquisition supports KUFPEC's stated target of producing 100,000 boepd by 2010. (*) .