Pertamina still undecided on interest in Australia

By Bernard Loebs

State oil and gas company PT Pertamina is still evaluating the possibility of selling its participating interest in Basker, Manta and Gummy (BMG) Block, offshore Victoria, Australia, the company?s senior official said.

?There?s no decision yet on the interest. We?re still analyzing the possibility of selling it,? PT Pertamina Vice President for Corporate Strategic Planning, Gigih Prakoso, told Petromindo.com on Tuesday.

He confirmed that the operator of the block had stopped the production from BMG, but refused to disclose details of why it had been stopped.

PHE acquired a 10 percent interest in the block, which is operated by Anzon Australia Pty Limited, on August 29, 2009 as part of Pertamina?s international expansion. Following the acquisition, the firm announced that BMG joint venture consisted of Anzon Australia Pty Limited (operator) with a 30 percent share, Beach Petroleum Limited (30 percent), CIECO Exploration and Production (Australia) Pty Ltd (20 percent), Sojitz Energy Australia Pty Ltd (10 percent), and PT Pertamina Hulu Energi (PHE)(10 percent).

Previously, it was reported that PHE, a subsidiary of Pertamina, and its partners had suspended production at the BMG block, due to problems at the production facilities.

?The block?s oil production reached 6,000 barrels per day (bpd). Production has been suspended for two to three years from now due to problems at the production facilities. We shall do evaluation and carry out plan to develop other structures,? said Tenny Wibowo, a director at PHE. Same as Gigih Prakoso, however, Tenny would not provide details about the problem at the production facilities.

Editing by Benget Besalicto Tnb.