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PGN strengthens foothold in upstream sector after acquiring 11.67% interest in Muara Bakau PSC

JAKARTA (rambuenergy.com) – National gas distributor PT Perusahaan Gas Negara (Persero) Tbk continues its drive to strengthen its portfolio in the upstream oil and gas sector. On Thursday, the company announced that it has acquired 11.67% working interest in Muara Bakau PSC.

In addition, PGN also acquired 0.038520% participating interest in the giant Indonesian Deepwater Development Project (IDD Project), located in Makassar Strait. PGN is yet to disclose the value of the transactions.

PGN buys the acquisition shares through its subsidiary PT Saka Energi Indonesia from GDF Suez E&P International S.A.’s subsidiary GDF Suez Exploration Indonesia BV.

Muara Bakau PSC is located in Kutai Timur basin in East Kalimantan province. Two fields in the block, Northeast Jangkrik and Jangkrik are expected to start producing gas in 2017.

The government holds 56.96 percent shares in PGN, while the public owns 43.04 percent.

Muara Bakau PSC is operated by ENI of Italy, which holds 55 percent working interest. The remaining 45 percent shares are held by GDF Suez. ENI is currently developing the Jangkrik Complex Development which integrates the development of the Jangkrik and Jangkrik Northeast fields.

The Muara Bakau block is located approximately 70 km off the coast of Makassar Strait, Indonesia with water depths of 200-500 meters. ENI has said earlier that the cost to the develop the project reached approximately US$4.13 billion.

ENI secured the plan of development (POD) for Jankrik development in November 2011 and the POD for Jangkrik North-East was approved in January 2013. The fields are expected to produce 450 million metric cubic feet of gas per day for the first six years and continue producing at a lower capacity for approximately eight more years. (*)

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