Shell, Arco boost presence in SE Asia<\/p>\n
SINGAPORE (Dow Jones): Royal Dutch\/Shell Group (RD) and
\nAtlantic Richfield Co. are boosting their presence in
\nSoutheast Asia's natural gas sector, despite the regional
\neconomic downturn that's halted many gas infrastructure projects
\nin their tracks.<\/p>\n
Shell announced last week it's agreed to an international
\nasset swap with Occidental Petroleum Corp. (OXY), under which it
\nwill acquire the latter's holdings in Malaysia and the
\nPhilippines. Shell expects to conclude the swap within 42 days.<\/p>\n
In Malaysia, the deal will make Shell partial owner and
\noperator of a gas-rich block off the coast of the eastern
\nMalaysian state of Sarawak, while raising its stake in Malaysia's
\nthird liquefied natural gas train, due to begin operation in
\n2001. In the Philippines, Shell will become the sole developer
\nthe Camago and Malampaya natural gas fields, taking over
\nOccidental's 50 percent stake in the $2 billion project.<\/p>\n
Earlier this month, Los Angeles-based Arco bought half of
\nTriton Energy Corp.'s (OIL) gas reserves in Block A-18 in the
\nMalaysia-Thailand joint development area, paying $150 million up
\nfront and committing to $377 million-$507 million for initial
\ndevelopment of the block.<\/p>\n
And in May, amid mounting economic woes and social unrest in
\nIndonesia, Arco indicated it's raising its exposure in the
\ncountry with the purchase of Union Texas Petroleum Holdings Inc.
\n(UTH). Union Texas has more than a third of its assets in
\nIndonesia's petroleum sector, primarily in liquefied natural gas.<\/p>\n
Meanwhile, Arco's $3.3 billion acquisition of Union Texas
\nreflected a premium of nearly 40 percent to the latter's share
\nprice at the time, valuing the company's Indonesian assets at
\nmore than $1 billion despite the turmoil in that country.<\/p>\n
With the purchase, Arco gains a 37.81 percent stake in the
\nVirginia Indonesia Co., or Vico. Vico supplies gas from the Sanga
\nSanga block offshore East Kalimantan to Indonesia's Bontang LNG
\nplant, which it helps run.<\/p>\n
The purchase was seen by industry observers as an effort by
\nArco to acquire LNG credentials before proceeding with marketing
\nand development of its huge Tangguh natural gas discovery off
\nIrian Jaya.<\/p>\n
The discovery is estimated to hold 10 trillion-13 trillion
\ncubic feet of gas. But industry observers say that - even more
\nthan for Malaysia's LNG Tiga project - finding contract buyers is
\ncrucial to Tangguh's development.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shell-arco-boost-presence-in-se-asia-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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