Pertamina still in talks with ExxonMobil over acquisition of stake in Iraq

By Godang Sitompul

Indonesia?s state-owned oil and gas firm PT Pertamina is still in the process of completing the bid for a 10 percent stake in the West Qurna-1 field, one of the largest oil fields in Iraq, from the field?s operator ExxonMobil.

?We?re still in the tender process held by the seller and is bound by confidential agreement, so we can?t provide information,? Director of Risk Management at Pertamina, Afdhal Bahaudin told Petromindo.com Saturday.

US oil giant ExxonMobil has been trying to farm out its 60 percent stake in the giant West Qurna-1 field. A report, quoting sources, on Thursday said that China?s PetroChina is likely to get a 25 percent stake in the field, and Pertamina 10 percent. ExxonMobil will be maintained as the operator, though its shares will be cut down to 25 percent, while Shell will retain its existing 15 percent stake.

Last year, ExxonMobil offered to sell its stake in the oil field following disagreements with the Iraqi government over contracts the company signed with semi-autonomous Kurdistan in the north, The Jakarta Post reported on Saturday.

In March, Indonesia?s Coordinating Economic Minister Hatta Rajasa visited Baghdad with a delegation including Deputy Energy and Mineral Resources Minister Susilo Siswoutomo and Pertamina CEO Karen Agustiawan.

Hatta said that during the visit, Pertamina got the ?green light? from the Iraqi government to enter the oil project.

Pertamina, which is also eyeing assets of US-based ConocoPhillips in Algeria, will record the biggest amount of foreign assets it has obtained to date should the transaction in Iraq go as planned.

The US$50 billion oil field, which currently produces around 500,000 barrels per day (bpd), may yield 1.8 million tons of crude oil when it reaches peak production. As a result, Pertamina could harvest 180,000 bpd in the future with only a 10 percent stake.

Editing Reiner Simanjuntak