Pertamina wants to increase at least 10% stake at W. Madura PSC

State oil and gas company PT.Pertamina said it wanted to increase its interest in West Madura PSC by at least 10 percent from 50 percent at present.

President Director Karen Agustiawan told reporters on Monday that Pertamina actually intended to acquire the entire ownership of the block and become an operator. She however did not explain why the firm cut the stake it wanted to buy.

At present, the block is operated by South Korean energy firm Kodeco Energy which has a 25 percent stake. The remaining 25 percent is owned by Chinese oil, gas giant CNOOC.

The block?s contract expires in 2011 and Kodeco has submitted a formal request to extend the block?s contract. The goverment may set new terms and conditions for contract extensions.

Last year, Pertamina announced it intended to increase its stake in the block and take over the operatorship if the government agreed to extend the block?s contract for another 20 years.

Sung Sik Min, a representative of Kodeco Energy said in October last year that Kodeco is opposed to Pertamina's intention of raising stake in the block. ?We prefer to stick to the current composition and we want to retain the block?s operatorship,? he said.

West Madura PSC currently produces 6,500 BPD of oil and 45 MMCFD of gas. (*)