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Total Eyes Warim Block Agreement to be Finalized This Year

JAKARTA: Total SA is having serious talks about the acquisition of ConocoPhilips-owned participating interest in Warim block, Papua.
The talk with ConocoPhilips is part of the company's expansion plan in Indonesia. The business agreement process is expected to be finalized this year.
President of Total Exploration and Production Yves-Louis Darricarrere revealed Total was committed to enhancing its presence in Indonesia through investments in the existing fields or acquiring new ones.
Regarding acquisition, he continued, Total was in the process of farming in participating interest from ConocoPhilips in Warim block, Papua.
"ConocoPhilips has a participating interest there and we are interested in acquiring it," Darricarrere informed Bisnis last weekend.
Record by Bisnis showed ConocoPhilips controlled an 80% participating interest in the onshore block, located in the border area of Indonesia and PNG. The other 20% interest is controlled by an Australian oil and gas company, Santos.
Darricarrere exposed Total had handed over its proposal to enter Warim to the government and ConocoPhilips since 2009.
"We have handed over the farm in plan since 2009 and are waiting for approval from the government. We really hope the approval can be given this year."
If the plan went well, he added, Total's entry to Warim would simultaneously take over the position of the operator from ConocoPhilips. "We'll become the operator there."
Highly risky
Darricarrere explained the status of Warim block was an exploration working area, which had no reports on reserves finding so far, meaning Total had taken a highly risky investment decision.
Corporate Communications Manager of ConocoPhilips Jacob Kastanja said he could not yet give any confirmation.
However, Director of Upstream Oil and Gas Business Development at the Ministry of Energy and Mineral Resources Edy Hermantoro admitted Total had reported their sounding of farming in ConocoPhilips's interest in Warim block. However, Edy said, the government was waiting for the result of the business talk between the two big oil companies.
"The government is still waiting for their business deal. Once again, the most important thing for the government is commitment there will be continuity even though the operator changes."
According to Edy, if based on the new Oil and Gas Law, operator could not be changed. Warim, he added, was also an old block whose plan of development was still being curbed by forestry regulation issues. (Bisnis/raf)

http://www.bisnis.com/pls/bisnis/bisnis.cetak?inw_id=716412

[Last update: 2010-02-01 10:44:08]