Pertamina to increase stake in Java oil, gas block

State oil and gas company PT Pertamina (Persero) through its upstream unit PT Pertamina Hulu Energi (PHE) is in final talks to acquire Inpex Corp.?s interest in Offshore Northwest Java (ONWJ) oil, gas block.

A Petromindo.com source said that PHE and Inpex might close the deal ?soon?.

Inpex has 7.25 percent interest in ONWJ block, while PHE, the block operator, currently holding 46 percent.

The source did not give further detail.

The block is currently producing 27,000 barrels of oil per day and 215 BBTUD of gas, which is being sold to pipeline to customers such as state electricity firm PLN, state fertilizer firm PT Pupuk Kujang and state gas distribution firm PGN.

PHE spokesperson Ali Mundakir last week said that the company is seeking to extend ONWJ contract by another 20 years when it expires in 2017.

Other participants in ONWJ block are: CNOOC (36.72 percent), Talisman Energy (5 percent) and Orchard Energy (5.03 percent). (godang)