Pertamina not interested to acquire further stake at Jambi Merang

State oil, gas company PT Pertamina said it has decided not to bid to acquire additional 25 percent interest at Jambi Merang JOB gas block onshore South Sumatra.

CEO Karen Agustiawan said on Monday that the price offered by Pacific Oil& Gas was ? too high?.

?Pertamina already has 50 percent interest in Jambi Merang and with the price offered, we are not interested to increase stake. Pertamina would just better wait for the contract to expire and take over the 50 percent we don?t own,? she said. She did not give detail about the price range.

Under the Join Operating Body (JOB) PSC system, Pertamina has the right to take over the block when it expires, as the block is originally owned by the company.

According to Petromindo.com data, the block?s contract will expire in 2019.

HK-based Pacific Oil& Gas, which is controlled by Indonesian tycoon Sukanto Tanoto is offering to sell its 25 percent interest at Jambi Merang.

US firm Hess Corp, which also has 25 percent interest in the block is also planning to sell its entire stake in the block.

The block is scheduled to commence production in 2010, with peak production of 120 MMCFD of gas and 12,000 BPD liquids reached one year after. Gas from the block will be piped to PLN?s power plant in Java. (bernard)