PHE to sell assets in Malaysia, Vietnam

By Bernard Loebs

PT Pertamina Hulu Energi (PHE), a subsidiary of state-owned oil and gas firm PT Pertamina, plans to sell its participating interests in Block SK-305 in Malaysia, and Block 10 and Block 11.1 in Vietnam.

PHE President Director Gunung Sardjono said on Thursday that the company has decided to sell the assets because of the lingering weak oil price, and as the company wants to focus on domestic assets.

PHE holds a 30 percent interest in Block SK-305, operated by Petronas Carigali. Gunung said that the interest would be offered first to Petronas. The block, located offshore Sarawak, produces 15 mmscfd of gas, and 1,000 bpd of oil.

PHE also owns 10 percent interest in Block 10 and Block 11.1 in Vietnam in partnership with Petro Vietnam, Petronas Carigali, and Quad Energy.

Gunung, however, said that the divestment plan of the interest has yet to be approved by the upstream authority in Vietnam.

Editing by Reiner Simanjuntak