Japanese upstream firm Japex has secured a 50pc stake in the Gebang gas block in Indonesia's North Sumatra, to strengthen its upstream asset in the southeast Asian country, where gas demand is expected to continue growing.
Japex has agreed to acquire a 50pc share in Indonesian firm EMP's subsidiary EMP Gebang (EMPG) for an undisclosed sum. EMPG holds 100pc of the working interest in the Gebang block, which is located along the coast of the Malacca Strait.
The area encompasses promising undeveloped gas fields with substantial exploration upside, and the possibility of an additional gas field, Japex said. The company is set to lead the development and early production of the discovered but undeveloped Secanggang gas field in the block.
At the same time, Japex transferred its entire 25pc share in EMPI to its parent firm EMP. EMPI currently mainly produces natural gas in the Kangean block offshore East Java in Indonesia. The decision comes after the completion of exploration and development, which Japex had undertaken since 2007. The Kangean block is now in the mature production phase after development, a spokesperson at Japex told Argus.
The divestment of the Kangean block means Japex will not have any upstream assets in Indonesia. This prompted the company to look for another project in the country, the spokesperson added.
