Petrogas declines to exercise right to acquire stake in E. Java PSC

PT.Petrogas Wira Jatim, a company which shares are controlled by East Java provincial government, declined to exercise its right to acquire 10 percent working interest in Sampang PSC offshore East Java, PSC partner Cue Energy Resources Limited said on Friday.

As the consequence, working interest composition in Sampang PSC remained unchanged, the company said. Australian oil firm Santos Limited is the operator of the block with 45 percent interest, Singapore Petroleum Company with 40 percent interest and Cue with 15 percent.

Under Indonesian regulation, a company appointed by Indonesian oil and gas authority had the right to acquire 10 percent of interest of any block which is ready to be developed by reimbursing all of the past costs.

Oyong field is Sampang PSC is scheduled to produce first oil in early third quarter of 2007 with initial flow rate of 8,000-10,000 BPD. First gas production is expected late 2008.(alex)