Saka likely to farm in to SNS Block B PSC
Thursday, October 22 2015 - 03:27 AM WIB
State owned gas distributor PT Perusahaan Gas Negara (PGN), through its subsidiary PT Saka Energi Indonesia, has expressed its interest to farm-in to the South Natuna Sea Block B PSC, an offshore producing oil, gas field offshore Sumatra.
Early of August, American firm ConocoPhillips received permission from upstream authority SKK Migas to open the data room of the block as part of the farm-out plan. ConocoPhillips through its Indonesian subsidiary ConocoPhillips Indonesia operates the block with 40 percent interest. US oil major Chevron Corp. has a 35 percent interest with the balance held by Japanese firm Inpex Corp.
?Hopefully we can take it, if it's cheap and attractive,? an industry source told Petromindo.com recently.
ConocoPhillips says in its website that the block?s net production in 2014 reached 29,000 boepd including crude oil (5,000 bopd), gas (117 mmscfd) and natural gas liquid (4,000 bopd). The block was awarded in 1968, started production in 1979 and expires in 2028. Natural gas from the block is sold to Singapore and Malaysia through two long-term contracts via the West Natuna Transportation System Gas Pipeline.
The block is one of the two main upstream producing assets owned by ConocoPhillips in Indonesia. The other one is Corridor block B PSC onshore South Sumatra.
Editing by Johannes Simbolon