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Pertamina finalizes acquisition of NSO and Block B from ExxonMobil

JAKARTA (rambuenergy.com) – State energy company PT Pertamina said it has completed the acquisition of Block B and North Sumatra Offshore (NSO) block in Nanggroe Aceh Darussalam for undisclosed price from ExxonMobil Oil Indonesia.

Pertamina bought the two assets through its subsidiary PT Pertamina Hulu Energy (PHE), which will control 100 percent stakes in the two blocks. Pertamina will also buy 30 percent interest of ExxonMobil in PT Arun Natural Gas Liquefaction facility.

“We have closed the deal to acquire NSO and Block B from ExxonMobil,” said Pertamina Director for Upstream Syamsu Alam said at a press conference on Thursday.

ExxonMobil’s contract to operate the two blocks will expire in 2018. Currently, Pertamina holds 55 percent stakes in Arun NGL, Exxon 30 percent and JILCO (Japan-Indonesia LNG Company consortium) holds 15 percent stakes.

Block B is estimated to still have oil reserves of 3,343 million stock tank barrels and gas reserves of 104 billion standard cubic feet (BSCF), while NSO Block is estimated to still have oil reserves of 272 MTSB and gas reserves of 92 BSCF.

In related development, Pertamina said it will set aside funds of between US$900 million and US$1 billion in 2016 to acquire oil and gas block assets both domestic and abroad. The funds are part of total capital expenditure for the year which is set at US$5 billion.

Pertamina bought the two assets through its subsidiary PT Pertamina Hulu Energy (PHE), which will control 100 percent stakes in the two blocks. Pertamina will also buy 30 percent interest of ExxonMobil in PT Arun Natural Gas Liquefaction facility.

“We have closed the deal to acquire NSO and Block B from Exxon,” said Pertamina Director for Upstream Syamsu Alam at a press conference on Thursday. The price of the two blocks were not disclosed.

Pertamina also announced its nine months financial performance. In the period, Pertamina recorded net profit of $914 million from a year ago of $1.1 billion and revenues of $32 billion dropped 42 percent compared the same period last year, partly due to lower oil price and weakening of rupiah to the US dollar. (*)

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