Petrowira Gas Jatim in talks to acquire interest in E. Java oil, gas block

East Java province-owned company PT.Petrogas Wira Jatim is in talks to acquire 10 percent stake in Sampang OSC , offshore East Java, a BPMIGAS official said on Thursday.

?Under the oil and gas law, regional government where the PSC is located, or Indonesian company appointed by BPMIGAS has right to acquire 10 percent interest based on business-to-business approach. And in this case, BPMIGAS is prioritizing Petrogas Wira Jatim,? said deputy chairman Zanial Ahmad.

Santos Indonesia official confirmed on Thursday that it was in talks with Petrogas.

Santos is the operator of Sampang PSC with 45 percent interest. Singapore?s SPC and Cue Energy have 40 percent and 15 percent interest, respectively.

According to Cue, Indonesian participant right would lapse on November 3, 2005.

Sampang PSC participant is developing Oyong oil and gas field, which is expected to commence oil production early next year and gas the following year.

Sampang participants had also discovered oil with early estimate of around 170 MMBO in Jeruk field. (godang)