Pertamina's M&P To Buy Shell Venezuela Stake

The Maurel & Prom subsidiary of Indonesian state Pertamina said October 12 it has signed an agreement to acquire Shell’s 40% stake in the Urdaneta West oil field in Venezuela for €70mn ($81mn).

The Paris-based Pertamina subsidiary said completion is subject to certain conditions, including governmental approvals and finalisation of ongoing talks with Venezuelan state producer PDVSA on the field's redevelopment.

The field is currently producing around 16,000 b/d oil at 100% basis (6,400 b/d net to Shell) and offers "significant optionality through the development of additional reserves, and the possible extension of the licence duration beyond 2026 - the current licence limit", said M&P also indicating its willingness to invest up to €350mn in the field, in Lake Maracaibo, over the period 2018-2023.