Indonesia's Indika Energy to acquire 10% stake in Total's Papuan block

Indonesia's Indika Energy to acquire 10% stake in Total's Papuan block

BY ANDREAS ISMAR

JAKARTA -- Indonesian operator Indika Energy said it has signed an agreement to acquire a 10% interest in an oil block in Papua province that is operated by Total.

The Indonesian government in 2011 awarded Total 100% participating interest and operatorship in the Southwest Bird's Head block, located in the offshore Salawati basin, roughly 2,800 km northeast of Jakarta.

"This purchase will strengthen further our energy platform, it will leverage Indika Energy's indepth understanding of the l market context and create synergies with our activities in Papua," Indika President Arsjad Rasjid said in a statement.

Both companies, which didn't disclose the transaction value, said that the deal is subject to approval by Indonesian authorities. They also said that drilling in the first exploration well in the concession, which covers 7,176 sq km, will start before the end of April.

Elisabeth Proust, the head of Total's Indonesia operation, said in a separate statement that the deal "is a first step for developing a wider cooperation between Total and Indika Energy and demonstrates Total's ability to team-up with quality local partners to explore and develop Indonesian oil & gas resources."

Dow Jones Newswires