BP to sell W. Java upstream asset [oilgasprof info]

BP to sell W. Java upstream assetThursday, February 19, 2009 - 09:24PM GMT+7Anglo-American energy giant BP Plc plans to sell its entire interest in Offshore North West Java (ONWJ) PSC in West Java.Nico Kanter, BP Indonesia Head of Country told Petromindo.

Com that BP planned to conclude the divestment by year-end.“BP plans to sell BP West Java Limited, an entity that holds 46 percent interest in ONWJ to another entity that would be able to develop the block more efficiently,” Kanter said.Thus far, BP has yet identified definitive buyer for the asset, he said.

But industry sources said that Chinese oil firm CNOOC Ltd, which is the second biggest stake holder in the block with 36.7 percent interest might be the strong contender for the block.ONWJ is one of Indonesia's largest offshore oil and gas operators - supplying energy for the domestic market on the island of Java and beyond.

The ONWJ concession stretches from Cirebon in the east to the Seribu Islands in the west. The ONWJ facilities include 670 production wells, 170 platforms, over 40 processing and service facilities, along with approximately 1,600 km of sub-sea pipelines.According to data from Ministry of Energy and Mineral Resources, the block produced 270MMCFD of gas in 2008 and more than 20,000 BOPD of oil.

The block supplies gas to state gas distribution firm PGN, state electricity firm PLN and state fertilizer firm Pupuk Kujang.The sale would not affect BP’s other interest in Indonesia such as Tangguh LNG project, East Kalimantan gas producer VICO Indonesia, lubricant business Castrol and petrochemical assets, Kanter said. (godang)