TANGERANG, Indonesia : Malaysian state energy company Petronas wants to include oil and gas projects in Indonesia’s Kutai Basin in its planned joint venture with Eni, an executive said on Tuesday.
Petronas and the Italian oil major announced the proposed tie-up in February to manage some upstream assets in Indonesia and Malaysia, combining about 3 billion barrels of oil equivalent (boe) of reserves with exploration that could bring estimated additional reserves of 10 billion boe.
The companies are in talks over which assets will be managed by the venture, the vice president responsible for Petronas’s international assets told reporters on the sidelines of the Indonesia Petroleum Association conference.
Petronas is aiming to swap interests in its assets in Malaysia and Indonesia with Eni’s blocks in the Kutai Basin, Mohd Redhani Abdul Rahman said.
“The idea is what we offer will complement the portfolio that Eni has here,” he said. “So we will be part of development of all the discoveries in Kutai Basin with the funding we get from all the assets we bring in from Indonesia and Malaysia.”
An Eni spokesperson said the company was not able to make immediate comment.
The Italian group’s Kutai Basin assets include developments in the Northern and Gendalo-Gandang hubs, which have massive gas reserves.
Talks on the assets to be included in the venture remain at an early stage, Redhani said, adding that Petronas will not include Indonesian assets only recently awarded to the company, such as the Binaiya and Serpang blocks.
