Lapindo to acquire N. Sumatra gas block from Japex

Japan petroleum Exploration, or known as Japex is in negotiation with local oil, gas company Lapindo to acquire the former?s interest in Gebang oil, gas block in North Sumatra and an MoU had been signed, according to an industry source.

Gebang block, which lies in the border of North Sumatra and Aceh is a gas block with production of 15 million standard cubic feet per day (MMCFD) and small amount of crude. Japex operates the block in cooperation with state oil and gas company Pertamina and the two companies had equal working interest in the block.

Lapindo is a local upstream company, operating Brantas PSC, a gas-producing block in East Java. (arry)