PGN exercises rights to control Pangkah PSC
Saturday, January 11 2014 - 02:10 AM WIB
PT Saka Energi Indonesia, a wholly-owned subsidiary of IDX-listed state gas distribution firm PT Perusahaan Gas Negara Tbk (PGN) has decided to exercise its pre-emptive right to acquire the remaining 75 percent interest in Pangkah PSC offshore East Java from US oil and gas firm Hess Corp for US$650 million.
Hess said in an announcement that the transaction was completed on Friday.
The asset, according to Hess, produced an average of 9,000 barrels of oil equivalent per day net to Hess in the first three quarters of 2013.
Earlier in December 2013, Hess announced that it has entered into two separate agreements with a joint venture between PT Pertamina and PTT Exploration and Production Company Limited (PTTEP) to sell its interests in both the Pangkah and Natuna Sea Block A, offshore Natuna for a total after-tax consideration of $1.3 billion.
On December 10, 2013, Hess announced the completion of sale of its 23 percent interest in Natuna Sea Block A to Pertamina and PTTEP for $650 million.
Saka Energi acquired its 25 percent interest in Pangkah PSC in June 2013 for $265 million.
Editing by Reiner Simanjuntak