PGAS: Plans to Acquire Hess’ Oil and Gas Blocks

PGAS to participate in a tender to acquire oil and gas blocks owned by Hess Corporation (75%). It plans to acquire 2 out of the 4 blocks owned by Hess. PGAS is particularly keen to acquire the Pangkah Blok in East Java, which produces 12,000 barrels of oil per day and 50mmcfd of gas. To acquire the block, PGAS would have to compete with MEDC, ENRG and PT Pertamina in the tender process. It is expected that PGAS would need to provide USD768mn to acquire the block, which it plans to raise from internal funds as well as strategic partners. Previously PGAS has acquired 25% of the Pangkah Blok from Kupfec in Jun'13 for USD256mn. Source: Kontan