Pertamina in talks with ExxonMobil over asset acquisition
Monday, December 8 2014 - 04:57 AM WIB
State owned oil and gas firm PT Pertamina (Persero) is planning to acquire the Block B PSC which includes the Arun field in Aceh operated by ExxonMobil Indonesia (EMOI), a unit of US giant ExxonMobil Corp., according to an industry source.
Last year, Exxon considered to return to the government its entire oil and gas block assets in Aceh because they were deemed to be no longer economical for further development.
?Exxon and Pertamina, through its subsidiary PT Pertamina EP Cepu (PEPC), are in discussion on the possible takeover by the state firm of Block B PSC which the American firm is reportedly planning to return to the government,? the source told Petromindo.com.
Exxon operates two blocks in the region, namely Block B PSC, which includes the Arun field, and the North Sumatra Offshore (NSO) PSC, the contracts of both will expire in 2018. Exxon has 100 percent interest in both blocks, which have been producing gas since 1978.
PEPC jointly operates the Banyu Urip field in Cepu block in East Java together with ExxonMobil Cepu Ltd. (EMCL) with each of them having 45 percent interest. PEPC also now operates the Alas Dara Kemuning PSC, which was part of Cepu block.
Editing by Reiner Simanjuntak