PHE, Videocon get additional interests in Nunukan

By Febry Silaban

IDX-listed PT Medco Energi International has handed over its 40 percent stake in Nunukan PSC in North Kalimantan to PT Pertamina Hulu Energi (PHE), a subsidiary of state own oil and gas firm PT Pertamina (Persero), and Indian firm Videocon Industries Ltd. ? both are partners in the block ? as it has decided to withdraw from the block.

PHE and Videocon get 31.67 percent and 8.33 percent, respectively.

Medco?s President Director Lukman Mahfoedz told Petromindo.com that his firm has got approval from upstream authority SKK Migas for the sale.

?Now we are waiting for approval from Directorate General of Oil and Gas (at Ministry of Energy and Mineral Resources),? he added.

Previously, Lukman stated that Medco withdrew from Nunukan block because the potentials of the block are less than expected and it is situated in a remote area with lacking infrastructure. ?It will take long to monetize hydrocarbons in remote areas," he said.

Meanwhile, General Manager of PHE Nunukan Alfian Husein said Pertamina got the additional interest in Nunukan from Medco for free. Once the deal has been approved by the government, PHE will see its interest increasing to 66.67 percent and will act as operator. Meanwhile, Videocon?s interest will increase to 20.83 percent, while another partner, Bharat PetroResources Ltd., will still hold 12.50 percent.

Editing by Johannes Simbolon