Pertamina buys BP?s ONWJ asset for $280 million

State-owned oil and gas firm Pertamina announced Thurday it has agreed to buy a 46% stake in the ONWJ oil, gas block in West Java from BP Plc. for US$280 million.

This was said by Pertamina president Karen Agustiawan to reporters at a signing ceremony, confirming a report released by this portal earlier in the morning.

But Pertamina did not partner with IDX-listed energy firm PT Indika Energy in the transaction as had been planned previously. "We're not going to partner with anyone. The planned partnership with Indika didn't go through," Karen said.

Karen also said that the acquisition of the BP asset will help increase Pertamina's oil and gas production, and is also part of the company's efforts to become a world class oil and gas firm.

Pertamina plans to raise its oil production this year by around 12% compared to 2008, and its gas production by around 8%, she added.

She didn't give figures for oil and gas output in 2008.

ONWJ is one of Indonesia's largest offshore oil and gas operators - supplying energy for the domestic market on the island of Java and beyond. The ONWJ concession stretches from Cirebon in the east to the Seribu Islands in the west. The ONWJ facilities include 670 production wells, 170 platforms, over 40 processing and service facilities, along with approximately 1,600 km of sub-sea pipelines.

According to data from Ministry of Energy and Mineral Resources, the block produced 270 MMCFD of gas in 2008 and more than 20,000 BOPD of oil. The block supplies gas to state gas distribution firm PGN, state electricity firm PLN and state fertilizer firm Pupuk Kujang.(godang/bernard)