Medco seen as winning bidder for stake in South Natuna Sea Block B PSC
Monday, August 29 2016 - 09:59 AM WIB
IDX-listed energy company PT Medco Energi Internasional Tbk emerges as the likely winning bidder for ConocoPhillips Indonesia?s stake in the South Natuna Sea Block B PSC in the Natuna Sea, Riau Islands Province.
A source told Petromindo.com on Monday that Medco offered the highest bid for the stake. ?It?s not yet signed, but the final buyer is Medco,? the source said, adding that the ConocoPhillips is expected to make an announcement early in September.
ConocoPhillips Indonesia Senior Vice President Joang Laksanto could not be immediately reached for confirmation.
This portal reported in May that Medco was competing with PT Saka Energy, a subsidiary of IDX-listed gas distribution firm PT PGN Tbk, for the South Natuna Sea Block B PSC interest to be sold by ConocoPhillips.
ConocoPhillips Indonesia operates the block with 40 percent interest. Another US oil major Chevron Corp. has 35 percent interest with the balance held by Japanese firm Inpex.
According to the ConocoPhillips? website, its net production from the block in 2014 was 29,000 BOEPD including crude oil (5,000 BPD), gas (117 MMCFD) and natural gas liquid (4,000 BPD).
The block was awarded in 1968, and first production came on line in 1979, with expiration scheduled in 2028.
Natural gas produced from the block is sold to Singapore and Malaysia through two long-term contracts via the West Natuna Transportation System Gas Pipeline.
Editing by Reiner Simanjuntak