By the OGJ Online Staff
LONDON, Jan. 24 -- Oklahoma-based Devon Energy Corp. has set February as the sale date for its oil assets in Southern Sumatra.
Indonesian state-owned oil company Pertamina, in partnership with the local provincial government in Jambi, has emerged as the most likely purchaser.
Devon Energy bought the assets when it acquired Santa Fe Snyder Corp. in 2000. The company has confirmed the sale, but has issued no details.
Devon Energy produces about 46,000 boe/d in Indonesia. Credit Suisse First Boston is the adviser for the sale.
Devon Energy is the operator of 5 production-sharing contracts in the country, 2 of which are in Jambi province. One contract is for an area in East Java and the other 2 are in the eastern province of Irian Jaya.
The company's Jabung field in Jambi is one of 3 production areas from which PT Peruhsahaan Gas Negara, Indonesia's state gas distributor, plans to ship gas to Singapore when it finishes a pipeline in 2003.
Gulf Indonesia Resources Ltd., 72% owned by Conoco Inc., operates the other two production areas which will ship gas to Singapore, and may make a bid for the Jabung contract, said Glen Valk, the company's manager of investor relations in Jakarta.
He said, "At the right price Jabung is an interesting asset. We're interested in all assets in Indonesia, so we look at everything."
Devon Energy is also selling its stake in Gulf Indonesia's South Jambi block, which is part of the Singapore gas deal.
Indonesia wants to encourage investment in oil exploration to boost reserves, which BP PLC's Annual Review of World Energy has set at 5 billion bbl since the end of 1996. Oil and gas accounted for 23% of the country's total export earnings in 2000.