PGN cancels plan to acquire Sanga-Sanga block

IDX-listed gas distribution company PT PGN Tbk has decided to cancel an earlier plan to acquire the Sanga-Sanga block in East Kalimantan following changes in the company?s business priorities until next year, Koran Tempo reported Friday.

?Our priority is not into the oil and gas upstream (sector),? PGN President Director Hendi Prio Santoso told the paper, adding that the company has yet to submit the required expression of interest to the Ministry of Energy and Mineral Resources for the acquisition of the block.

As has been reported previously by this portal, PGN through its subsidiary PT Saka Energy Indonesia planned to acquire the Sanga-Sanga block operated by PT Vico Indonesia, whose contract is set to expire in 2018.

Participants of the block are BP East Kalimantan Ltd (26.25 percent), Lasmo Sanga Sanga Ltd (26.25 percent), Virginia International Co. (15.625 percent), Virginia Indonesia Co. (7.5 percent), Opcoil Houston Inc. (20 percent), and Universe Gas & Oil Company Inc. (4.37 percent). (*)