Ampolex seeks to buy Humpuss shares in Cepu
Ampolex seeks to buy Humpuss shares in Cepu
JAKARTA (JP): Oil and gas company Ampolex (Cepu) Pty Ltd., a
subsidiary of the United State's energy company Mobil Corp., is
seeking to take over Humpuss Patragas's 51 percent stake in the
Cepu oil and gas field on the border of Central and East Java.
An informed source at Pertamina, the state oil and gas
company, said on Monday that Ampolex had informed Pertamina of
its planned takeover and Pertamina supported the move because of
its disappointment over Humpuss' poor performance.
The source said Humpuss Patragas, which is a unit of PT
Humpuss, controlled by former president Soeharto's youngest son
Hutomo "Tommy" Mandala Putra, has often given Pertamina false
information about its operations.
"It often exaggerates the results of its explorations," the
source said.
In 1990 Humpuss was awarded a technical assistance contract to
operate Pertamina's 1,670 square kilometers Cepu oil and gas
field.
Under the contract, Humpuss is required to give Pertamina 65
percent of the block's oil output and 70 percent of its gas
output.
Humpuss later sold Ampolex a 49 percent stake in the oil and
gas field in its effort to seek a partner to help it master oil
exploration and development technology.
The source also said that Pertamina had sent a letter to
Minister of Mines and Energy Kuntoro Mangkusubroto asking him to
terminate the production sharing contract (PSC) awarded to
Taiwan's Overseas Petroleum and Investment Corporation (OPIC) and
its partners to develop the Peudada offshore oil and gas field in
Aceh.
Under the PSC, the block was 32.5 percent owned by OPIC and 35
percent owned by Treasure Bay Enterprise, which is controlled by
Tommy's older brother Bambang Trihatmodjo. The remaining 32.5
percent stake was held by Mobil.
Refusal
The source said OPIC had refused to continue the project due
to internal disputes among its shareholders in Taiwan, and Mobil
was reluctant to buy out its shares due to Bambang's partial
ownership of the block.
"The block will be tendered in the future," the source said.
Pertamina recently called on foreign oil and gas contractors
to sever ties with Soeharto's family and cronies by acquiring
their shares in their joint ventures.
The state company announced the policy as part of efforts to
eliminate corruption, collusion and nepotism in the country's oil
and gas industry.
Pertamina said recently that it had identified 159 contracts
entered into by the company which were awarded on the grounds of
collusion, corruption and nepotism during the Soeharto era. The
contracts include 15 contracts for gas and oil exploration and
production.
Atlantic Richfield Indonesia Inc. (ARII), a unit of the U.S-
based Atlantic Richfield Co. (ARCO), and British Petroleum have
taken over the 10 percent stake owned by PT Bimantara, controlled
by Bambang, in the Kangean offshore block in East Java.
ARII and British Gas have also taken over Bambang's 10 percent
stake in the Sepanjang offshore block in East Java.
Bambang has reportedly never injected capital into these
ventures, leading to the dilution of its shares to an
insignificant amount.
Another U.S. giant energy company, Unocal Corp., is seeking to
buy out the shares owned by PT Nusamba, controlled by Soeharto's
golfing partner Muhammad "Bob" Hassan, in its two PSC offshore
blocks in the Ganal and Rapak areas of East Kalimantan. Nusamba
has a 10 percent stake in each of the blocks. (jsk)