West Java demands 10% interest in ONWJ block

The Ministry of Energy and Mineral Resources will meet with the West Java provincial administration Thursday over the latter?s request for a 10 percent participating interest in the ONWJ block, operated by PT Pertamina Hulu Energi (PHE), Bisnis Indonesia reported Wednesday.

The paper quoted Director General of Oil and Gas IGN Wiratmadja as saying that the provincial administration holds a lawful right to get the 10 percent participating interest because the block is located within 12 nautical miles from the province?s coastline.

?Assessment has been made, and the decision is in the hands of minister (Sudirman Said), ? Wiratmadja said.

The existing contract over the ONWJ block will expire in 2017. The government has recently extended the contract with PHE obtaining a greater stake of 73.5 percent (from 58.25%), while PT Energi Mega Persada Tbk?s (EMP) interest down to 24 percent from 36.75percent, and PT Risco Energy ONWJ Ltd (Kupfec) 2.5 percent.

If the government approves West Java?s request for interest in the block, PHE will allocate 7.35 percent interest, EMP 2.4 percent, and Kupfec 0.25 percent. (*)