PGN unit acquires interest in Muara Bakau PSC

By Ruli Setiawan

IDX-listed gas distribution firm PT PGN Tbk said that its subsidiary PT Saka Energi Indonesia has completed the acquisition of 11.67 percent participating interest in the Muara Bakau production sharing contract (PSC) from GDF Suez Exploration Indonesia, a subsidiary of France-based GDF Suez E&P International SA.

?This is a cash transaction,? PGN said in a statement Thursday, but did not disclose the value of the acquisition.

The Muara Bakau PSC is located at the eastern part of Kutai Basin in East Kalimantan. It is operated by Italy?s oil and gas firm Eni SpA, which holds a 55 percent interest. GDF Suez owned a 45 percent stake before it sold the 11.67 percent interest to PGN. The Jangkrik and North Jangkrik fields, which are currently under development, are expected to produce its first gas in 2017.

With the purchase of the interest in the Muara Bakau PSC, PGN automatically obtains a 0.038 percent interest in the Indonesia Deep Water Development (IDD) project, operated by Chevron, because part of Muara Bakau has been integrated with the Maha field, one of the five fields under the IDD project.

Editing by Reiner Simanjuntak