Pertamina eyeing 25% stake at giant gas fields

State oil and gas company PT.Pertamina is eyeing up to 25 percent three major gas projects in East Kalimantan and Timor Sea which are operated by giant oil, gas firms, a company official said on Monday.

Vice President Director Iin Arifin Takhyan told reporters on Monday that Pertamina is looking to acquire 25 percent stake at Total SA-operated Mahakam Block, which is currently the major gas supplier to Bontang LNG plant in East Kalimantan. Mahakam block contract would expire in 2017, and according to Iin, the government has signaled Pertamina?s participation in the block in return for contract extension.

Total currently has 50 percent interest in the block, which currently produces 2.6BCFD of gas, with the remaining balance held by Japan?s Inpex Corp.

Iin also said Pertamina will acquire 10 percent stake in Chevron Corp.?s deepwater gas project offshore East Kalimantan, which has the potential to supply 800 MMCFD of gas to Bontang LNG plant when fully developed in 2013 and Inpex?s Masela Gas block in Timor Sea, which will be developed into a 5 MTPA LNG plant in 2015-16. Under the Indonesian participation regulation, Pertamina has a right to acquire 10 percent stake in a block after first plant of development is approved by the government. The government has approved Chevron?s PoD and is expected to approve Inpex?s Masela PoD by year end.

Iin said Pertamina will seek another 15 percent stake in Chevron?s deepwater and Inpex?s Masela under business-to-business deal.

?Pertamina has notified its intention to respective operators,? Iin said.

Iin said that the plan is part of Pertamina?s ambitious plan to maintain position as Indonesia?s major LNG player. (bernard/godang)