Pertamina eyeing 30% stake in Masela block

State-owned oil and gas company PT Pertamina has expressed its interest to buy a 30 percent stake in the Masela gas block currently controlled by Japan?s Inpex Corp. as part to maintain position as Indonesia?s major LNG player.

Pertamina President Director Ari H. Soemarno said in Jakarta on Friday that the company had prepared the funds needed for the acquisition.

?We are serious with the planned acquisition of the block. We have sent a letter to Inpex, and has enough funds for the acquisition,? he said.

Earlier, 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, Vice President Director Iin Arifin Takhyan told reporters on October 6 this year.

Pertamina is looking to acquire a 25 percent stake in Total SA-operated Mahakam Block, which is currently the major gas supplier to Bontang LNG plant in East Kalimantan. Mahakam block contract expires in 2017, and the government has suggested Pertamina?s participation in the block in return for contract extension, according to Iin.

Iin also said Pertamina will acquire a 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 up to 10 percent stake in a block after first plan of development is approved by the government.

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. (*)