Saka seeking to take over Murphy?s blocks
Monday, July 13 2015 - 08:10 AM WIB
State owned gas distributor PT Perusahaan Gas Negara (PGN), through its subsidiary PT Saka Energi Indonesia, is seeking to take over the Wokam II and Semai IV blocks in West Papua from American firm Murphy Oil Corp.
Elan Biantoro, Chief Spokesman of upstream authority SKK Migas, told Petromindo.com that Murphy, which owns 100 percent interest in both blocks, has fulfilled all its exploration commitment to the blocks and is now in the process of farming out its interests in both blocks to Saka.
Government & External Relations Manager of Saka Purwanto Nugroho confirmed the firm is faming into the two blocks.
Elan also said Murphy is in the process of relinquishing South Barito block in South Kalimantan and Semai II block in West Papua. Murphy has 100 percent interest in South Barito, and 28.33 percent of Semai II.
Elan said Murphy has also fulfilled its commitment to Semai II block, but has yet to meet its commitment of drilling two blocks in South Barito. ?The firm is however ready to pay US$15-$20 million in penalty,? Elan said.
Murphy has told SKK Migas that it will pull out of Indonesia as it wants to focus on investment outside of the country.
Editing by Johannes Simbolon