PT Pertamina, Indonesian oil company, still with Cnooc Ltd. on a possible joint bid for Exxon Mobil Corp.’s stake in an Angola oil concession, in what may be Indonesia’s biggestoverseas acquisition.
The Financial Times said Pertamina and Cnooc canceled their plan for a possible $3.5 billion bid for Exxon’s 25 percent stake in the block. Indonesia, a former OPEC member, is seeking oil resources to stem a decline in domestic production. Crude output dropped2.5 percent to 769,068 barrels a day in April from March, the nation’s oil and gas regulator (BPMigas) said on May 3.
Angola, which vies with Nigeria as Africa’s top oil producer, pumped 1.625 million barrels a day last month.
Pertamina was allocated US$1 billion for acquiring overseas and domestic oil and gas blocks this year. The company hired Citigroup Inc., CreditSuisse Group AG and HSBC Holdings Plc to help it with a proposed benchmark-sized sale of dollar bonds at least $500million.
Acquisitions mayhelp Pertamina cut crude imports and raise output by the equivalent of 100,000 barrels of oil a day in 2015.
Pertamina and Cnooc scrapped their proposal to acquireExxon’s stake after a dispute over the terms of renewal of theWest Madura oil and gas block in Indonesia.
On May 6, Indonesia’s energy ministry said Cnooc withdrewfrom the West Madura block as Pertamina increased its stake inthe project to 80 percent from 50 percent. Pertamina wanted to expand its share and reduce Cnooc’s holding to 10 percent from25 percent, the FT said in its report.
Indonesia produced 957,000 barrels of oil a day last year,missing its target of 965,000 barrels. The government expectsoutput to reach 952,000 barrels a day this year.
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