Petronas Andaman III Indonesia has acquired 49 percent participation interest of Talisman Andaman, a unit of Spanish company Repsol in Andaman III block - Photo by Mubadala Petroleum

JAKARTA (TheInsiderStories) – Malaysia oil and gas company, Petroliam Nasional Bhd through its unit Petronas Andaman III Indonesia has acquired 49 percent participation interest (PI) of Talisman Andaman, a unit of Spanish company Repsol in Andaman III block, it said on Monday (12/23).

Andaman III is located in off the coast of Aceh and operated by Repsol with participation interest of 51 percent. Talisman had won the block in 2009 before Repsol acquired them in 2015.

According to the director, Mohammad Nazlee, the acquisition supported the company’ long-term vision in Indonesia. They will also cooperate with Aceh’ Oil and Gas Management Board and Repsol to develop oil and gas industry in Aceh.

As reported, Repsol intends to drill the first wells in Andaman III block in fourth quarter of 2020. The target is longer than previous schedule due to the delay of drill tools shipment in Oct 2020.

Beside Malaysian and Spanish investors, United Arab Emirates (UAE) and British investors also hold participation interest in others Andaman block. Recently, UAE’ firm Mubadala Petroleum signed an agreement with British energy producer Premier Oil to farm out a 20 percent participating interest in Andaman and South Andaman concessions located at Aceh Province.

Mubadala is the operator of both the Andaman I and adjacent South Andaman. The deal use Gross Split Production Sharing Contracts scheme. Its hope the completion of the transaction is subject to the government approvals.

The two companies was also partnering in the Andaman II project with a 30 percent participating interest, which is operated by the British company. With participating interests in these three adjacent blocks, Mubadala became the largest net acreage holder in the area, securing the core of the North Sumatra basin for future exploration growth.

The projects have the potential to unlock a new material gas supply for the domestic consumption in North Sumatra and potentially long-term export to regional markets.

While, Petronas has been operating in long time in Indonesia. Recently, the firm and Indonesian energy producer PT Pertamina agreed to work together in developing the oil and gas business and its derivatives in the both countries and abroad.

Pertamina‘ director, Heru Setiawan, stated that the synergy between the two companies was a realization of the government to government collaboration that had been established before. He adds, both parties will explore the possibilities of cooperation starting from the upstream to downstream fields, trade in a number of oil and gas products and derivatives (condensate and petrochemicals), and renewable energy.

The collaboration that will be carried out is not only located in Indonesia and Malaysia, but in other countries such as oil processing in East Asia and joint exploration of business opportunities on other continents.

In the trade sector, the two companies agreed to exchange crude oil between production parts in Malaysia (Kikeh, Kimanis and Kidurong Fields) with production parts in Indonesia (Jabung and Ketapang Fields).

Petronas has several projects in Indonesia namely Bukit Tua Block and North Madura in East Java. Established in 1974, the Malaysia’ fully integrated oil and gas multinational ranked among the largest corporations in the world. The key projects in Malaysia are Pengerang Integrated Complex and Sabah Ammonia Urea. The company also manage upstream and downstream projects globally.

Written by Staff Editor, Email: theinsiderstories@gmail.com