Ministry supports Saka Energi?s plan to enter Sanga-Sanga
Thursday, June 11 2015 - 01:21 AM WIB
Director General of Oil and Gas IGN Wiratmaja Pudja voiced supports for PT Saka Energi Indonesia, a subsidiary of state owned gas distributor PT Perusahaan Gas Negara (PGN) Tbk, to farm into the Sanga-Sanga block in East Kalimantan, whose contract is due in 2018.
?It?s good if Saka farms into Sanga-Sanga block, Vico Indonesia,? Wiratmaja.
Industrial sources said Saka Energi has voiced interest to enter the block and most partners in the block warmly welcome the firm?s intention and are willing to farm out their interest in the block.
?All of them (Sanga-Sanga shareholders) want to sell their interest (to Saka). They don?t want to have a similar fate as Mahakam,? one of the sources said, referring to the government?s decision to hand over the Mahakam block to state owned oil and gas firm PT Pertamina once the existing contract on the block expires in 2017.
Pertamina recently sent a letter to the ministry that it is interested to take over the Sanga Sanga block after the expiry of its contract.
The ministry recently issued a regulation providing Petamina with favors to take over expiring blocks. The regulation has caused a deep concern among investors.
Wiratmaja said thus far the operator of the Sanga-Sanga block, Vico Indonesia, has not yet applied for a contract extension for the block.
Participants of the block are BP East Kalimantan Ltd (26.25 percent), Lasmo Sanga Sanga Ltd (26.25 percent), Virginia International Co. (15.625 percent), Virginia Indonesia Co. (7.5 percent), Opcoil Houston Inc. (20 percent), and Universe Gas & Oil Company Inc. (4.37 percent)
Editing by Johannes Simbolon