Pertamina has privilege to acquire interest in East Sepinggan

By Febry Silaban

State-owned oil and gas firm PT Pertamina (Persero) said it has acquired a 15 percent participating interest in East Sepinggan PSC operated by Italian firm Eni SpA based on the privilege specified in Eni?s bid document.

Pertamina?s Upstream Director Syamsu Alam said that Eni?s bid document for the block states Pertamina may acquire a 15 percent participating interest in the block, for which the state firm has to reimburse 15 percent of the past costs of the block.

"The transaction was closed on Dec. 9, 2014. Pertamina will reimburse the past costs proportionately with its interest," Syamsu told Petromindo.com.

He said Pertamina has yet to receive details of the past costs from Eni as the operator.

Eni was awarded the production sharing contract for East Sepinggan block in July 2012. Following the transaction with Pertamina, the firm?s ownership of the block has been reduced to 85 percent.

Eni has made an important gas discovery in the Merakes exploration prospect in the block. Preliminary estimates put the reserve at 1.3 tcf of gas in place. Merakes is the first exploration well to be drilled by Eni.

The East Sepinggan block is located close to two major gas projects in Muara Bakau block, namely Jangkrik (JKK) and Jangkrik North East (JNE). The Muara Bakau block is 55 percent owned and also operated by Eni.

Editing by Johannes Simbolon