Indonesia’s PT Pertamina offers US$3.5 billion to buy stake in Angolan oil block

11 May 2011

New York, United States, 11 May – Indonesian oil group PT Pertamina has put forward a proposal of US$3.5 billion to buy the 25 percent stake owned by Exxon Mobil Corp in Angola’s Block 31, exceeding the offer put forward by China’s Sinopec the Wall street Journal reported.

The newspaper added that the Indonesian state group was now in negotiations with Exxon Mobil after putting forward a higher proposal than the China Petrochemical Corp (Sinopec) and Indian group Oil & Natural Gas Corp.

Indonesia, which is a former member of the Organisation of Petroleum Exporting Countries, plans to obtain foreign oil assets following a decline in national production, whilst China and India plans to use the assets to meet domestic demand.

Angola’s Block 31 is operated by BP which has a 26.7 percent stake and the remaining partners are Esso, of the Exxon Mobil group (25 percent), Sonangol (concession-holder with 20 percent), Statoil ASA (13.33 percent) and Marathon Oil Corp (10 percent).

France’s Total sold its 5 percent stake to China Sonangol International Holding Ltd., a company with headquarters in Hong Kong. (macauhub)