Kufpec to pull out from ONWJ block

Kuwait Foreign Petroleum Exploration Company (Kufpec) has decided to no longer participate in ONWJ block, West Java, when the government renews the block?s production sharing contract next year, Kontan reported on Friday.

The paper quoted Director General of Oil and Gas at the Ministry of Energy and Mineral Resources IGN Wiratmaja Puja as saying that Kufpec decided to pull out from the block next year 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 state-owned oil and gas firm PT Pertamina, as operator, will be increased from the current 58.27 percent to 72.5 percent, while the interest of PT Energi Mega Persada (EMP) will be cut down from 36.72 percent to 24 percent. The paper said that under the new contract, the West Java provincial administration will also get a 10 percent participating interest in the block.

Pertamina Upstream Director Syamsu Alam said that his company is ready to take the Kufpec?s shares in the ONWJ block. Meanwhile, EMP Director Didit Ratam said his company will continue to participate in the ONWJ block. (*)