Indonesia's Perusahaan Gas Negara to Acquire Gas Field

Indonesian gas distributor Perusahaan Gas Negara (PGN) will acquire one more gas field to further expand its growing upstream business, Jakarta Post reported Thursday.

“In the near future, we will announce the acquisition of a gas block in South Sumatra. It’s already in production,” the newspaper quoted PGN president director Hendi Prio Santoso as saying.

The company has been expanding its upstream business this year to secure supplies. Its subsidiary, Saka Energi in June bought 25 percent participating interest in Ujung Pangkah block in East Java from Kuwait Foreign Petroleum Exploration Company (Kufpec) in a deal worth $265 million.

The company also picked up 20 percent participating interest in Ketapang PSC gas block, also in East Java, from Sierra Oilfield Services.

PGN, which currently has 6,000 kilometers gas pipe and around 91,000 customers, will need an additional 20 mmscfd in gas supply next year to feed its gas stations, said Jakarta Post.

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