Uchenna Izundu
OGJ International Editor
LONDON, June 30 -- Indonesia’s state-owned Pertamina will pay $280 million to BP PLC for BP West Java Ltd. (BPWJ), which operates the Offshore North West Java (ONWJ) production-sharing contract.
BP has sold the subsidiary to concentrate on its VICO joint venture in Kalimantan and Tangguh LNG project in Papua.
Pertamina will assume the 46% operating interest and average gross production of 220 MMcfd and 22,000 b/d of oil.
As part of the agreement, BP and Pertamina will cooperate on developing coalbed methane in Indonesia.
The ONWJ concession covers 8,300 sq km immediately off West Java stretching from north of Cirebon to the Kepulauan Seribu. There are 314 production wells and 218 offshore structures, of which 11 are permanently manned flow stations for processing and compression, and 375 pipelines covering 1,250 km in distance. The assets include three onshore gas receiving facilities.
The ONWJ contract supplies gas for power generation and industrial, commercial, and residential consumption in the greater Jakarta area.
The other holders of interests in ONWJ PSC are CNOOC ONWJ Ltd. with 36.72%, Inpex Jawa Ltd. with 7.25%, Orchard Energy Java BV (Salamander) with 5%, Itochu Oil Exploration Co. Ltd. with 2.58%, and Talisman Resources (NW Java) Ltd. with 2.4%.
Contact Uchenna Izundu at [email protected].
