Pertamina claims offer for West Qurna stake

Pertamina claims offer for West Qurna stake Mohammed Hatta Rajasa (left), Indonesian Coordinating Minister for Economic Affairs, and Iraqi Deputy Prime Minister for Energy Affairs Hussain al-Shahristani, meeting March 14, 2013, when the two countries signed an energy and economics memorandum of understanding. (source: the office of the deputy prime minister) By Staff of Iraq Oil Report Published Thursday, March 14th, 2013 BAGHDAD - Indonesia has signed an Iraqi crude supply deal and said it is in talks to purchase up to 20 percent of the ExxonMobil-operated West Qurna 1 oil field. Led by Mohammed Hatta Rajasa, the country's Coordinating Minister for Economic Affairs, a delegation of more than a dozen, including officials from state company Pertamina, also signed energy and economic cooperation agreements in Baghdad on Thursday. "We are negotiating and there is a possibility to buy 10 to 20 percent of West Qurna 1," R... UPDATE 2-Pertamina seeks part of Exxon's stake in Iraqi oilfield Thu, Mar 14 10:43 AM EDT By Raheem Salman BAGHDAD, March 14 (Reuters) - Indonesia's state-owned oil and gas firm Pertamina is in talks to buy 10-20 percent of Exxon Mobil's stake in Iraq's West Qurna-1 oilfield, Indonesia's Chief Economic Minister said on Thursday. The development of the $50 billion West Qurna-1 project has been in question since last year, when Exxon offered to sell its stake after contracts it signed with the autonomous Kurdistan region riled Baghdad, which rejects them as illegal. Indonesian minister Hatta Rajasa confirmed that Pertamina is interested in buying into the project. It has begun negotiations for a possible 10 to 20 percent stake, he said at a news conference in Baghdad. Sources have said Exxon is considering selling part of its 60 percent stake in West Qurna-1 to PetroChina , the listed arm of China National Petroleum Corp (CNPC). Iraqi Prime Minister Nuri al-Maliki has offered Exxon sweeter contract terms to keep it operating in the south, on condition that the U.S. oil giant gives up its Kurdish deals, industry sources say. Thursday's news conference also confirmed the signing of a memorandum of understanding that Iraq is to supply Indonesia with 35,000 barrels of oil per day. UPDATE 1-CEO of Indonesia's oil firm Pertamina to stay for now Tue, Mar 05 04:46 AM EST By Fathiya Dahrul and Fergus Jensen JAKARTA, March 5 (Reuters) - The chief executive of Indonesia's state-owned oil and gas company, Pertamina , has been asked to stay on after the expiry of her four-year term on Tuesday, a minister said. Pertamina is one of Indonesia's most valuable state assets and sources of funding, and the process of choosing its leader is frequently embroiled in controversy and political feuds. During the time Karen Agustiawan ran Pertamina as its first woman chief executive, Indonesia's second-biggest oil producer aggressively acquired oil assets both at home and abroad to boost profits and offset declining output. "Now her time is up, but before a new CEO is appointed there must continue to be one," Dahlan Iskan, the minister for state-owned enterprises, told reporters. "We're waiting for the decision of the final assessment team and they won't necessarily replace her. They may also not extend her tenure." The company reported profits of more than 25.89 trillion rupiah ($2.67 billion) in 2012 and was expected to boost oil output by 5 percent to 244,000 barrels of oil per day this year. "Mrs. Karen is pretty good. She's not that special, but she is pretty good," said Iskan, who along with President Susilo Bambang Yudhoyono makes the final decision on who will run Pertamina. "Her profits were the largest in the history of Pertamina." Agustiawan could not be reached for comment. A Pertamina spokesman declined to confirm the extension of her tenure. Pertamina plans to spend up to $6.7 billion to boost production and expand infrastructure in 2013. The company bought three Indonesian units of U.S. oil company Anadarko Petroleum Corp for an undisclosed price in December, followed by the acquisition of the Algerian unit of ConocoPhillips for $1.75 billion. Last month, Pertamina scrapped its plan to buy the Venezuelan assets of Harvest Natural Resources Inc for $725 million. Pertamina, which accounted for 17 percent of Indonesia's oil and gas output in 2012, is under pressure to improve oil infrastructure to prevent subsidised fuels from being sold illegally. Fuel subsidies gobble up around 15 percent of government spending, totalling 306.5 trillion rupiah last year.