REKL in talk to sell interest in E.Java exploration block to Petronas

RIMS Energy Karapan Limited (REKL), co-operator and 50 percent interest holder of Karapan PSC exploration block offshore East Java is offering to sell 25 percent interest in the block to potential investor, a company official said on Friday.

?REKL is currently in talk with Malaysian national oil company Petronas Carigali to sell 25 percent interest in Karapan PSC,? said REKL senior official Gajah Eko Pireno. Petronas is REKL?s joint venture partner in operating Karapan PSC. REKL and Petronas jointly operate the block through Joint Operating Company (JOC).

Gajah said prior to the talks with Petronas, REKL had offered to sell interest to several oil companies, but failed because the buyers wanted REKL to sell its entire 50 percent stake in the block.

He did not say the reason behind the sale offer, but sources said REKL had difficulties in fulfilling its commitment.

The JOC had strike two oil, gas discoveries in the block, namely Nummulites-1 and Turitella-1.

Gajah said the JOC had delayed plan to drill one more wild cat exploration well in the block, scheduled to be spudded in October this year, to the first half of next year.(alex)