Pertamina, Jambi sign deal to purchase Devon?s asset

The state-owned oil and gas company Pertamina and the Jambi provincial administration on Thursday signed a deal to team-up in the purchase of 30 percent working interest in Jabung production sharing contract (PSC) block in Jambi which belongs to U.S.-based oil company Devon Energy.

The memorandum of understanding was signed in Jakarta by Pertamina?s president Baihaki Hakim and Jambi governor Zulkifli Nurdin.

Devon, along with its partners, is investing about US$ 275 million into developing the so-called Betara Complex in Jabung PSC over the next three years. The funds will be used for facilities to process gas, liquefy petroleum gas and crude.

Betara project is expected to come on stream in the third quarter of 2003 with the initial gas sales of 65 million standard cubic feet per day (MMCFD), reaching the plateau sales of 150 mmcfd.

The gas will be piped to Singapore starting 2003.

Starting 2003, Jabung Block will supply approximately 40 percent of 150 million cubic feet (MMCFD) of gas requirement, which will gradually peak to 350 MMCFD in 2009.

Besides natural gas, the Betara Complex would also be able to process some 10,000-barrel per day (BPD) of liquefied petroleum gas (LPG).

Currently crude production from Jabung PSC averages 23,000 BPD with the potential of producing more in the future following a recent oil discovery in the Block

Devon, Amerada Hess and Kerr McGee have equal working interest in Jabung with Devon as operator. Pertamina holds the remaining 10 percent interest

Devon Energy plans to sell all Indonesian oil blocks in a bid to raise cash to focus investment in other countries. (Godang)