More than 10 firms interested to acquire Hess? assets in RI
Monday, May 20 2013 - 01:50 AM WIB
US oil and gas firm Hess Corporation is currently evaluating letter of intents submitted by more than 10 firms interested in acquiring the company?s stakes in oil and gas blocks in Indonesia, according to a source.
?Many are interested in the Hess (assets) particularly the ones already in production including the Pangkah and Block A PSCs,? the source told Petromindo.com Monday.
He added that Hess is trying to quickly complete the divestment process in Indonesia. The move, as reported by this portal in March, is part of the company?s strategy to divest oil and gas assets in various countries as it aims to focus on the US operation, according to the upstream authority SKK Migas, in Indonesia. The move, however, may create further negative sentiment in Indonesia amid growing criticism over the deteriorating investment climate in the country?s oil and gas sector among others due to lingering legal uncertainty problems.
Hess is among few international oil and gas companies which are very active in Indonesia. According to the Oil and Gas Book 2013 published by Petromindo, the firm is the operator in four blocks, namely Pangkah PSC, in which it has a 75 percent stake, Semai V PSC (100 percent), South Sesulu PSC (100 percent), and Offshore Timor Sea I PSC (100 percent). It also owns non-operator stakes in another three blocks, namely Natuna Sea Block A PSC (23 percent), Kofiau PSC (42.5 percent) and West Timor PSC (49 percent).
Editing by Reiner Simanjuntak