Pacific Oil eyeing more Indonesian upstream assets

Independent energy firm Pacific Oil & Gas Indonesia is seeking opportunities to increase its Indonesian upstream portfolio, a company official said.

?As a young company, Pacific Oil is actively searching for opportunities to get quality upstream assets. Currently, we are evaluating proposals to acquire assets that would meet our investment criteria,? the company?s President AR. ?Dudung? Natanegara told Petromindo.Com in an interview Wednesday.

The company?s GM Upstream Exploration Supriadi Arif said that Pacific Oil is keen to participate in the Pertamina?s maturing oilfields, which were scheduled to be tendered soon under a joint operations scheme. ?We?re waiting for the detail,? he said. Pertamina is planning to find joint operation partners to operate tens of its maturing oilfields across the country in a bid to increase production and to share financial burden.

Supriadi said that this year alone, the company had been evaluating 15 upstream proposals. ?Last year we evaluated some 20 proposals and ended up acquiring 50 percent non-operating interest in Chevron-operated Kisaran block in Central Sumatra,? he said. ?We do hope to be able to clinch a deal this year,? he said, without elaborating further. Chevron is currently testing the first well drilled in Kisaran block.

Aside from Kisaran block, Pacific Oil has 25 percent interest in Pertamina-Amerada Hess Jambi Merang JOB in Jambi, which it acquired from Spanish-Argentinean firm YPF in 2004. The block is scheduled to commence production in mid-2008, with peak production of 120 MMCFD of gas and 12,000 BPD liquids reached one year after. Some 80 MMCFD of gas from the block will be piped to PLN?s power plant. Supriadi said talks to sell the remaining capacity are ongoing.

Dudung said that investment to develop Jambi Merang block from 2005 to 2008 would exceed US$ 300 millions, half of which would be shouldered by Pacific Oil. Under the JOB system, Amerada Hess and Pacific Oil equally shoulder development investment of Jambi Merang Block.

?Being a young company, Pacific Oil adopts flexible strategy to pursue opportunities when arise and to leave them when situation is not conducive,? he said. Pacific Oil had been given a green light by the government several years ago to develop an LNG train in Bontang, East Kalimantan. But Dudung said that the project ?is no longer a priority?, as gas from East Kalimantan are being prioritized for domestic consumption.

Dudung said the company is also looking for upstream opportunities in ASEAN, as well as in Indonesian downstream and power industry.

Pacific Oil& Gas Indonesia, which is founded in 2003, is a wholly owned subsidiary of Hong Kong-based privately held firm Pacific Oil& Gas. One of Pacific Oil& Gas shareholders is Indonesian pulp and paper tycoon Sukanto Tanoto. (alex)