Singapore?s SPC eyes Devon Energy Indonesian assets: Report

Singapore Petroleum Co. is mulling the acquisition of Devon Energy Corp.'s upstream assets in Indonesia, SPC board member Choo Chiau Beng told reporters Wednesday.

"We are looking at the Devon assets," said Choo, who is also executive director of Keppel Corp., SPC's parent company. U.S.-based natural gas producer Devon is selling assets, including stakes in Indonesia and Argentina, that no longer fit its long-term objectives.

SPC already owns a 15% stake in the Kakap field in the West Natuna Sea, which supplies natural gas to Singapore. It is also a member of a consortium bidding for a 40% stake in a gas pipeline from Sumatra, Indonesia, to Singapore.

Devon operates and has a 30% stake in the Jabung block in South Sumatra, and has interests in the nearby South Jambi Block B gas project operated by Gulf Indonesia Resources Ltd.. Gas from the two blocks will be exported to Singapore from 2003.

Devon is also offering the Tuban block in East Java, Kepala Burung and Sulawati-Kepala Burung blocks in Irian Jaya, and Bangko block in southeastern Sumatra.

Indonesia's state-owned oil and gas company, Pertamina, is also interested in Devon's assets, but "only four out of six blocks offered," a Pertamina official said earlier. He valued the assets at under $200 million. (*)