Pertamina mulls merging SES, ONWJ blocks
Saturday, November 12 2016 - 03:35 AM WIB
State-owned oil and gas firm PT Pertamina (Persero), which has expressed interest in taking over South East Sumatra (SES) block, offshore Lampung, is considering to merge the block with its ONWJ block to help achieve cheaper cost of operation if the takeover is realized.
"We're preparing a model to merge SES with ONWJ so that the operation (cost) is cheaper. Probably this will be the scenario," said Pertamina Upstream Director Syamsu Alam to Petromindo.com on Friday.
Syamsu said Pertamina is currently in the process of evaluating the block, hoping to be able to decide the economics of the project soon.
CNOOC is offering its stake in the block since it is not sure whether its contract on the block, which expires in September 2018, will be extended with the firm remaining the operator.
The SES block is located in the shallow water (17-55 m) of the Java Sea in southeast of Sumatra, about 90 km northwest of Jakarta. CNOOC SES Ltd as operator has 65.54 percent interest in the block, while the remaining interest is owned by Pertamina Hulu Energi OSES (20.55 percent), Saka Energi Sumatra (8.91 percent), and KUFPEC Indonesia (SES) B.V. (5 percent).
Editing by Reiner Simanjuntak