Oilfields development
Pertamina to Make $3.5 Billion Bid in Africa: WSJ
State oil and gas company Pertamina has put in a bid of about $3.5 billion for Exxon Mobil’s 25 percent stake in an Angolan oil block, surpassing an offer from a Chinese rival.
According to a report by The Wall Street Journal, which cited an unnamed source familiar with the matter, the state firm is holding talks with Exxon on the stake after fending off competition from China Petrochemical Corp., known as Sinopec Group, and India’s Oil and Natural Gas Corp., the newspaper said.
Indonesia, a former member of the Organization of Petroleum Exporting Countries, is seeking oil resources to stem a decline in domestic production, while China and India are buying stakes in overseas projects to meet demand in the two fastest-growing major economies. Angola, which vies with Nigeria as Africa’s top oil producer, pumped 1.625 million barrels a day last month.
Sinopec Group’s Beijing-based spokesman, Huang Wensheng, did not answer three calls requesting a comment. Indonesian industry players and government officials were similarly reluctant to comment on the report.
Mochamad Harun, vice president of corporate communications for Pertamina, declined to comment.
“If there is a deal, I will tell you the result,” Harun told the Jakarta Globe in a text message.
Irnanda Laksanawan, a deputy minister for primary industries at the State Enterprises Ministry, said he “has not received any report [on the deal] from Pertamina.”
“The SOE Ministry was not aware about Pertamina’s plan,” Irnanda said in a text message.
A Bloomberg report on Monday said Pertamina had hired Citigroup, Credit Suisse Group and HSBC Holdings to assist with a proposed benchmark-sized sale of dollar bonds, citing an unnamed source. Benchmark typically means at least $500 million.
ONGC lost a bid to buy Exxon’s stake in Block 31 in Angola, two people with knowledge of the matter said in March. India’s biggest energy explorer had offered about $2 billion, they said.
BP owns 26.7 percent of the block and serves as its operator. The other shareholders include Exxon’s Esso unit, with a 25 percent stake, Statoil ASA with 13.3 percent and Marathon Oil Corp. with 10 percent.
France’s Total SA sold its 5 percent stake to Hong Kong-based China Sonangol International Holding, according to the newspaper report.
Indonesia, Southeast Asia’s largest oil producer, became a net importer after declining output at aging fields led to the country’s withdrawal from OPEC in 2008.
Crude production dropped to 769,068 barrels per day in April from 788,497 barrels per day in March, the nation’s upstream oil and gas regulator, BPMigas, said on May 3.
Pertamina has pursued a number of avenues as it tries to expand its output. It attempted to purchase a 27.9 percent stake, valued at $200 million, in Medco Energi last year before pressure from the House of Representatives led it to give up the chase.
The state firm succeeded this month in gaining control of the West Madura oil and gas block. It increased its stake in the block from 50 percent to 80 percent and took over as its operator from South Korean firm Kodeco Energy, which had operated West Madura since 1981. Three other shareholders left the block when their contracts expired on Saturday.
