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)