Pertamina eyeing interest in Madura Straits PSC

State oil and gas company Pertamina has formally asked the government to be given interest in Madura Straits PSC offshore East Java, as part of the condition for the government to extend the block?s contract, a government official said on Tuesday.

Director General of oil and Gas Evita Legowo told reporters that Pertamina has submitted formal letter to the government. She did not disclose the percentage of interest Pertamina is asking.

Madura Straits PSC is operated by Canadian oil firm Husky Energy which holds 50 percent interest in the block. The remaining balance is held by Chinese firm CNOOC Ltd.

The block?s contract will expire in 2012 and the partnership has submitted proposal to extend the block?s contract. Government through Ministry of Energy and Mineral Resources has right to grant or decline contract extension.

Husky and CNOOC plan to develop the block to produce 100-110MMCFD of gas and 6,000 barrels per day of condensate. The natural gas will be processed through a floating production unit and will flow via a 60 kilometer pipeline for delivery onshore to East Java.

In 2007, Husky signed three gas sale and purchase agreements for the sale of 100 million cubic feet per day of natural gas from the Madura BD field to East Java buyers.

Evita also said that Pertamina has made similar request to be given interest in the giant Hakam block PSC, which is operated by Total SA. The block?s contract will expire in 2017. (Godang)