Repsol to sell stake in Tangguh project

By Febry Silaban

Spanish oil and gas firm Repsol will sell all of its stake in the LNG Tangguh project in West Papua, according to an official of the firm.

The official said to Petromindo.com that Repsol may fetch as much as US$300 million from the sale of its stake in Tangguh project.

Repsol owns a 3.06 percent stake in the LNG Tangguh project through Talisman Energy. Last year, Repsol acquired 100 percent of the shares of the Canadian company for $8.3 billion, plus assumed debt of $4.7 billion. The deal will transform Repsol into one of the world?s largest privately-owned energy groups, with increased presence in OECD countries, incorporating reserves and production in politically stable countries. Additionally, it will add a significant exploration portfolio and high-quality productive assets in North America (Canada and U.S.), South-East Asia (Indonesia, Malaysia and Vietnam) as well as Colombia and Norway, amongst others.

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%).

BP and partners are currently working on expanding the LNG plant?s production capacity, raising it to 11.4 mtpa with the addition of a third 3.8 mtpa train.

Editing by Johannes Simbolon