Pertamina ups interest in E. Java block

State oil and gas company PT.Pertamina (Persero) through its two subsidiaries PT. Pertamina Hulu Energi and PT.Pertamina Gas has signed deal to acquire 25 percent interest owned by IDX-listed energy firm PT.Medco Energi Internasional at Tuban JOB oil, gas field, East Java.

Pertamina Communication VP told reporters that the deal was signed on July 31, 2008. Pertamina would pay Medco US$42 million for the 25 percent interest.

Following the acquisition, Pertamina?s interest in the block would increase to 75 percent. The remaining balance in the block is held by PetroChina, which co-operates the block with Pertamina.

Tuban block has been producing oil since 1998. Currently the block is producing oil from its two main fields; Sukowati (26,000 BPOD) and Mudi (3,300 BPOD). According to Wisnuntoro, the block is expected to produce 40,000 BPOD in 2009. (Bernard)