May 6, 2011

CNOOC pulls out from West Madura

Finally, government through production sharing contract (PSC) has mandated PT Pertamina (Persero) to be an operator for managing West Madura Offshore Block and to control 80% stake.
In the meantime, PSC joint operating agreement will extend and restate the previous contract due to on May 6 2011, said Expert Staff of Energy and Mineral Resources Minister (ESDM) Kardaya Warnika. Then, the portion stake consists of 80% for Pertamina and 20% for Kodeco Energy Co Ltd.
The contract had been signed by President Director of Energy Upstream Business at West Madura Hemzairil, General Manager of Kodeco, and Head of BP Migas R. Priyono witnessed by Darwin Saleh, ESDM Minister.
The appointment of Pertamina has made China-based CNOOC pulled out from the West Madruda block following the regulatory decision to mandate the state oil and gas company Pertamina as the operator of the oil block.
CNOOC had sent a letter to the agency to formally state its decision to withdraw from the oil and gas block.
The contract of West Madura Block had firstly been signed on May 7 1981 with Kodeco controlled 25% portion, while 50% and 25% went to Pertamina and CNOOC respectively. However, 2 months before the contract invalid, BP Migas had approved to diverse portion of Kodeco to PT Sinergindo Citra Harapan and CNNOC Madura Ltd to Pure Link Investment Ltd by 12.5% each.

Disclosure: No position at the stock mentioned above.

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