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JAKARTA: State oil company PT Pertamina (Ltd) finally receives a 15% participating interest in the Semai II block, which is located offshore the southern part of West Papua.
Upstream Director of Pertamina Bagus Setiardja revealed the company had prepared funds for oil operations. The amount of fund prepared reached 15% of the signature bonus of US$11 million and exploration commitment of US$138 million for the first three years following the acquisition of the oil and gas block.
"At the moment, we have entered the process of giving formal information to the upstream oil and gas regulatory agency BP Migas and the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources," he said yesterday.
According to Bagus, the signing of the acquisition was made by the related parties, namely Pertamina, PT Pertamina Hulu Energi (PHE), Murphy Oil Corp, Inpex Corp, and PTT EP Thailand on June 17, 2010 in Jakarta.
By controlling a participating interest of 15% in the Semai II block, the three other shareholders find their shares decreasing by 5% each.
Murphy Oil Corp, Inpex Corp, and PTT EP found their PIs decreasing from 33.3% PI to 28.3%. In the meantime, Pertamina has a 15% PI. "Pertamina has a PI there [the Semai II block]," added Bagus.
Murphy has been the operator of the oil and gas block, which has 6-8 trillion cubic feet (tcf) in reserves. In accordance with the contract, in the first three years three wells will be drilled in the oil and gas block, which covers an area of 3,300 square kilometers.
Senior Vice President Upstream Planning and Evaluation of Pertamina Gunung Sardjono Hadi previously confirmed Pertamina's plan to control a 15% PI in the Semai II block. (Bisnis, November 13, 2009).
He explained Murphy and its partners controlled the Semai II block through the tender process and Pertamina didn't join the tender.
However, he added, based on the regulation Pertamina had a right to have a PI in the block, which would be taken from the related parties in equal percentage.
Murphy, he continued, was the majority PI holder in the block and also served as the operator. "We have proposed this to the operating consortium and they are deliberating it."
Mahakam Block
The government recently also endorsed Pertamina to enter the Mahakam block, East Kalimantan, before the operatorship contract (Production Sharing Contract/PSC) of Total EP Indonesie ended in 2017.
Minister of Energy and Mineral Resources Darwin Zahedy Saleh disclosed the government in principle wanted the operation of oil and gas fields that had been termination should be returned to the state.
"If Total really wants to extend their status in Mahakam, they certainly will do it under careful deliberation. We want Indonesia, in this case Pertamina, to be prioritized. Before the contract expires, Pertamina has entered the block."
Pertamina itself targets to acquire a 25% PI in the Mahakam block before the contract of Total E&P Indonesie expires in 2017.
To realize the acquisition, the state-owned enterprise has submitted a proposal on the plan. The PI is even targeted to increase to 50% when the government grants the request of the French oil and gas company in continuing with the block operation.
President Director of PT Pertamina (Ltd) Karen Agustiawan once targeted to enter the block, which will still have 12 trillion cubic feet of gas reserves in the second semester of 2010. Pertamina at first is eyeing to control a 25% PI before increasing it to 50% in 2017 and to a majority share, so that it will become the operator in 2027.
In response to Pertamina's plan, Darwin supported it, saying the state-owned oil and gas enterprise had to play a bigger role in the national oil and gas industries.
Total E&P Indonesie previously said it would maintain gas production from the Mahakam block at 2,300-2,400 MMscfd next year due to relatively huge reserves. (Bisnis/nti)
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