Chevron relinquishes Block B stake

JAKARTA, October 13, 2017 – American super-major Chevron is in the process of divesting its 25% share in Indonesia’s Block B, international media reported on Friday. Bumi Hasta Mukti is acquiring the asset, located in the Natuna Sea.

All told, Block B holds 16 gasfields and three oilfields. While all of the oilfields are in production, some of the gasfields are awaiting development. In 2016, average production at the asset yielded around 6,000 bpd of LPG, 20,000 bopd and 5.78 mcm (197 mcf) of natural gas.

While the monetary value of the transaction remains confidential, the transfer of ownership will make the Block B asset wholly owned by Indonesia operators. Medco Energi serves as the block’s operator and holds the remaining 75% stake.

Bumi Hasta Mukti is a mystery to those unfamiliar with the Indonesian hydrocarbons market. However, local operators report that the company has been active in Indonesia’s oil and gas industry for more than 10 years.

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