Medco eyes CNOOC?s interest in ONWJ block

PT Medco Energi Internasional Tbk is reportedly interested to buy the stakes of China National Oil Offshore Company (CNOOC) in the Offshore North West Java (ONWJ) block, operated by PT Pertamina Hulu Energi (PHE), a subsidiary of the national oil and gas company PT Pertamina.

Apart from ONWJ block, Medco is also interested in buying ExxonMobil's interest in Arun and North Sumatera Offshore satellite fields. As for Exxon's interest, Medco may prefer to wait for Exxon?s contract to expire in the block, rather than bidding the interest before Exxon's contract expires.

?Medco may opt to farm in the ONWJ block and Arun because the blocks are already in production stage. Medco seriously considers entering the (two) blocks,? a source, who is familiar with the bidding process, told Petromindo.com.

CNOOC is currently holding an open bid for parties interested to purchase its 36.72% interest in ONWJ block.

The majority ownership of the ONWJ block is held by Pertamina Hulu Energy with 53.25%. The other owners are Talisman Resources (NW Java) Ltd with 5.03% and Salamander (Java) Ltd with 5%.

?National companies, Ancora, Pacific Oil and Gas Indonesia, Medco Energi and Energi Mega Persada are ready to take part in the CNOOC?s tender to sell interest in ONWJ,? the source told Petromindo.com.

Meanwhile, an executive of Pertamina said that Pertamina is mulling over a plan to raise its interest in the ONWJ block. ?We may bid for CNOOC?s shares,? the executive said. (godang)