PGN in talks to acquire upstream interests

Publicly listed state gas distribution firm PGN said on Tuesday that it was in talks with several local and foreign firms to acquire minority interest in several gas blocks.

PGN president WMP Simanjuntak declined to reveal the names of the companies PGN are talking to, but hinted that the blocks are located in the vicinity of its pipeline grids in Sumatra and Java. He also hinted that all the blocks are either gas producing blocks or blocks that already have gas reserves.

He further said that PGN would likely take maximum 10 percent working interest in each block. “This is just a strategy to secure long-term gas supply for PGN’s pipeline grid,” said Simanjuntak. (alex/godang)