Pertamina, PTTEP Acquire Hess' Indonesia Assets

Pertamina announced Monday that its wholly owned subsidiary, Pertamina Hulu Energy, jointly signed an agreement with PTTEP Netherlands Holding Cooperatie U.A.(a subsidiary of PTTEP) to acquire Hess's subsidiaries which hold 75% participating interests in Pangkah Block and 23% participating interests in Natuna Sea A Block.

The two blocks are located offshore Indonesia.

The acquisition is on a basis of 50:50 between Pertamina and PTTEP.  Total transactions for the acquisition is approximately $1.3 billion in which Pertamina will fund its proportionate share.

Pangkah Block is located in East Java Sea, Indonesia. The current production is approximately 7,000 barrels per day of liquids and 33 million cubic feet per day of gas, with total proven and probable reserves (2P) of 110 million barrel of oil equivalent (BOE). After the completion of the transaction, Pangkah Block will ultimately be jointly operated by Pertamina and PTTEP.

Meanwhile, Natuna Sea A Block is a gas field located in West Natuna Sea, near the border between Malaysia and Indonesia. The current production is approximately 145 million cubic feet per day of gas from Anoa Field, 75 million cubic feet per day of gas from Gajah Baru field and 2,350 barrels per day of oil, with total proven and probable reserves (2P) of million 209 barrel of oil equivalent (BOE). 

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