Indonesian Mega Persada buys 100% of BP's Kangean Block in E Java Date: 18/06/2004
-------------------------------------------------------------------------------- Indonesian oil and gas company PT Energi Mega Persada has bought the Kangean Block in East Java from its 100%-owner BP for US$160- 170-mil, a Mega Persada official said on Thursday. The transaction would be completed in July, the official added. Energi Mega Persada was competing with Chinese state-owned offshore producer China National Offshore Oil Corp and Indonesia's Medco Energi and Elnusa (a Pertamina subsidiary) to acquire the block. The Kangean block's reserves are pegged at 1-trillion cu ft of gas. The block consists of the Terang Sirasun and Pagerungan gas fields and is currently producing at 120-mil cu ft/day. Meanwhile, BP was also seeking an extension for the block as the license for the block's Terang Sirasun gas field is set to expire in 2010. But it was not immediately clear how it would go about seeking the extension now that it had sold the block. Tately to work with Pertamina to develop Palmerah oil block Date: 16/06/2004 -------------------------------------------------------------------------------- PERTAMINA, Indonesia's state-owned oil and gas company, will jointly develop with a Malaysian-controlled firm the Palmerah oil block in Jambi, South Sumatra. The concession for the area has been awarded to Malaysian-controlled Tately NV. Pertamina corporate senior vice president for the upstream Bambang Nugroho said both companies had signed a memorandum of understanding (MOU) in December last year to pave the way for cooperation in the development of oil and gas exploration in the area. "Yes, we have signed the MOU for the Palmerah block in Sumatra. "Tately would like to extend the MOU and it would like to cooperate with Pertamina in the exploration of oil and gas in East Java under the risk-sharing basis," he told newsmen after presenting his working paper at the conference. He dismissed suggestions that Pertamina would acquire a proportion of the shares in the Palmerah block. "The spirit is cooperation," he said. Registered in the Netherlands, Tately, which is linked to tycoon Ananda Krishnan, was among the foreign and local firms awarded the seven new oil and gas blocks by the Indonesian government late last year. These companies are expected to spend a total of US$173.55 million (US$1 = RM3.80) on initial exploration. Tately beat three other bidders for the Palmerah block in South Sumatra, which was said to be one of the most sought-after by oil companies. The other three bidders were Golden Spike Energy Indonesia, ConocoPhillips and PT Elnusa Harapan. Tately was said to have secured the contract for the exploration at the lucrative block because of its investment commitment to the first-year exploration. Prior to this, two Ananda-linked companies - Zodan and Zudavi which were also registered in the Netherlands - were awarded oil and gas exploration rights in Indonesia in Sept ember 2001. Zodan won the contract to search for oil and gas in the 5,420 sq km Popodi block and Zudavi the 4,200 sq km Papalang block, both off the east coast of Kalimantan in the Makassar Strait. In December 2001, the two companies signed a production-sharing contract to conduct the exploration and production of oil and gas. It was reported that Zodan and Zudavi would invest a total of US$35 million for a three-year firm commitment. Excorp Holdings Ltd is the holding company for Zodan and Zudavi, which in turn is linked to Usaha Tegas Sdn Bhd, a company controlled by Ananda. Tately is closely linked to Zodan and Zudavi. Pertamina is the first and the fourth largest producer of oil and gas in Indonesia. Source : Business Times 16 Jun 2004 Chevtex urges Indonesia to review investment terms Date: 15/06/2004 -------------------------------------------------------------------------------- ChevronTexaco Corp , the biggest crude producer in Indonesia, urged Jakarta on Monday to review investment terms for the oil sector to reverse a sharp fall in domestic output that has turned the country into a net importer. Chairman and chief executive officer David J. O'Reilly said Indonesia needed to provide incentives for more expensive operations such as enhanced recovery and marginal field development to arrest the production decline. "Indonesia needs to focus on its oil investments and I think there is an opportunity for the government to hopefully re-examine their terms to encourage investment so that it can reverse the decline," O'Reilly told reporters at the annual Asia Oil & Gas conference. "We are examining opportunities to improve production there...but it does require a collaborative effort with the government and authorities to provide the right incentives." Industry sources pegged Indonesian crude output at 962,700 barrels per day (bpd) in May, down from 967,000 bpd in April, and one government official has predicted that Indonesia will not be able to raise output above one million bpd this year. "We hope we can raise output from 2006 as some new oilfields come onstream," Iin Arifin Takhyan, director general oil and gas at the Mines and Energy Ministry said in March. ChevronTexaco, through its arm Caltex Pacific Indonesia, is the biggest equity oil producer in Indonesia and pumped 505,900 bpd in May compared with 511,750 bpd a month earlier. Condensate output has also fallen, hitting 113,000 bpd in May against 136,000 bpd in April. Industry sources have blamed a lack of clarity over the legal and fiscal framework for deterring investment in Indonesia's upstream sector, leading to a decrease in oil and gas output. The country may have to buy up to 30 spot cargoes of liquefied natural gas (LNG) this year to be able to fulfil its term commitments as domestic gas output slides, some analysts have said. Indonesia is the world's biggest exporter of LNG. Source : REUTERS 14 Jun 2004 --------------------------------------------------------------------- To unsubscribe, e-mail: [EMAIL PROTECTED] Visit IAGI Website: http://iagi.or.id IAGI-net Archive 1: http://www.mail-archive.com/iagi-net%40iagi.or.id/ IAGI-net Archive 2: http://groups.yahoo.com/group/iagi Komisi Sedimentologi (FOSI) : F. Hasan Sidi([EMAIL PROTECTED])-http://fosi.iagi.or.id Komisi SDM/Pendidikan : Edy Sunardi([EMAIL PROTECTED]) Komisi Karst : Hanang Samodra([EMAIL PROTECTED]) Komisi Sertifikasi : M. 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