Pertamina eyes ConocoPhillips? asset in Vietnam

Oil and gas company PT Pertamina is looking to acquire ConocoPhillips?s oil and gas block in Vietnam as part of the state-owned company?s un-organic growth strategy, Bisnis Indonesia reported on Wednesday.

Upstream director of Pertamina, Muhamad Husen said that the company aims to achieve oil and gas production of 1 million barrel per day oil equivalent, compared to this year?s target of 470,000 bpd.

?To be able to realize the production target, we have to conduct un-organic corporate action including acquiring a number of blocks overseas,? Husen said.

He said in Vietnam, Pertamina was eyeing the ConocoPhillips asset in that country.

ConocoPhillips has announced its intention to divest some of its assets in Vietnam including the 23.3 percent ownership in Block 15-1 Offshore South China Sea. Other shareholders of the block include Petrovietnam (50%), KNOC (14.2%), SK Corp (9%), and Geopetrol 3.5%. PetroVietnam has also made a price offer of US$1.5 billion for its asset.

?What?s clear is that we?re ready to bid for the ConocoPhillips asset. Funds will come from internal cash and borrowings,? Husen said, adding that Pertamina is also interested to acquire other overseas assets including in Kazakhstan, Angola, Iraq, Sudan, and Algeria.

Pertamina has also made a request to the government to take over operatorship right over 23 oil and gas blocks, whose contracts will soon expire including the Mahakam Block, Arun, South Natuna Sea Block B, and Chevron?s block in Riau.

As of third quarter of this year, Pertamina has managed to realize oil production of 198,000 bpd, or about 92 percent of this year?s target. (*)