Repsol sells interest in Tangguh

By Romel S. Gurky

Tangguh LNG|BP

Spanish oil and gas firm Repsol announced on Friday that it has sold its all 3.06 percent stake in the integrated Tangguh LNG Project in West Papua, for a consideration of US$ 305.4 million plus usual adjustments for these types of transactions of US$7.4 million.

The company stated in a press release on Friday that the transaction will generate an estimated pre-tax capital gain of US$ 26 million. But the press release did not elaborate which company bought Repsol?s interest.

The Tangguh LNG project, which is operated by BP and has two liquefaction trains with a capacity of 3.8 Mtpa each, produces and markets the gas resources in the Berau, Muturi and Wiriagar licence areas under PSC agreements.

Repsol owns its 3.06 percent stake in the LNG Tangguh project through Talisman Energy. In 2014, Repsol acquired 100 percent of the shares of the Canadian company for $8.3 billion, plus assumed debt of $4.7 billion.

Tangguh LNG project, which started production in 2009, involves the development of six gas fields in the Wiriagar, Berau and Muturi production sharing contracts in Bintuni Bay, West Papua.

Tangguh is operated by BP Berau Ltd on behalf of the other production sharing contract parties, as contractor to upstream authority SKK Migas. BP Berau Ltd and its affiliates in Indonesia hold a 37.16% interest in the project. Other Tangguh production sharing contract partners are MI Berau B.V. (16.30%), CNOOC Muturi Ltd. (13.90%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau Petroleum Ltd and KG Wiriagar Petroleum Ltd (10.00%), Indonesia Natural Gas Resources Muturi Inc. (7.35%), and Talisman Wiriagar Overseas Ltd. (3.06%).

Editing by Benget Besalicto ST.