Pertamina eyeing to take over Maluku oil, gas block

By Godang Sitompul

State oil, gas company PT Pertamina (Persero) has asked permission from ministry of energy and mineral resources to open data room of Seram (Non Bula) Block in Maluku, indicating its interest to acquire the block when the contract is expired in 2019.

Ministry?s Upstream Director Tunggal told Petromindo.com on Monday that the government is preparing to assign Pertamina to take over the block. ?However, current operator CITIC Limited, is also interested to extend the block?s contract,? Tunggal said. ?Ministry is asking CITIC and Pertamina to team up to operate the block,? he added.

The block?s current contract will expire in December 2019. Earlier last month, the block?s 2.5% interest holder Lion Energy said that the block?s partnership is working to extend the contract.

The block contains Lofin gas discovery, which , according to Lion contains Contingent Resources (2C, Best Estimate) of 2 TCF of gas and 18 milion barrels of condensate.

Lion said that options to commercialize discovery include development of single LNG train with capacity of 2 million tonnes per annum (300 mmcfd of gas and 8,000 bbl condensate per day), similar to Senoro LNG plant in Central Sulawesi, or CNG plant providing gas to Eastern Indonesian market.

Apart from Lofin discovery, the block also contains Oseil field, which is currently producing at around 3,600 BOPD.

CITIC is the block?s operator with 51% interest with Kuwaiti firms KUFPEC and Petrogulf holding 30% and 16.5%, respectively. The remaining 2.5% balance is held by ASX-listed Lion Energy.

Under current regulation Pertamina has been given priority to take over the blocks which contracts are expired.

Editing by Alexander Ginting