[Kabar-indonesia] 14 oil/gas/mining reports: OPEC Plays Down Talk of RI Meeting; Pertamina; PGN

[JoyoNews at aol.com]

14 reports:

- OPEC Officials Play Down Talk 
  Of Indonesia Nov OPEC Meeting
- Indonesia Dumai refinery running
    60 pct-Pertamina
- Indonesia to sell PGN stake this 
  yr to meet 3 trln rupiah privatization 
  target
- Indonesia's Pertamina cuts June-July 
  fuel supply ceiling amid low consumption
- Indonesia's Renaissance on track for 
  US$2.1 bln loans [needed to fund a coal 
  mine acquisition from Bumi Resources]
- Upstream: Bumi-EMP tie-up in Indonesian 
  family
- The Australian: East Timor missing 
  at gas gabfest
- Upstream: CNOOC kick-off in Sumatra
- Upstream: Serica prowls for Kambuna 
  FPSO
- Upstream: Anadarko picks up deep-water 
  assets in return for block stake
- Finders Resources says Wetar project 
  has 10.7 mln tons of 2.4 pct copper
- Churchill Mining Confirms High Calorific 
  Coal At Sendawar
- Anadarko in 2 multibillion-dollar deals
  [incl: Kerr-McGee]
- Petromindo Headlines, 
  Friday, June 23, 2006

OPEC Officials Play Down Talk Of Indonesia Nov OPEC Mtg

LONDON, June 23 (Dow Jones) -- OPEC officials Friday played down a
suggestion by Indonesia that it will host a meeting of the oil
producing group in November.

A spokesman at the Organization of Petroleum Exporting Countries'
Vienna headquarters said Indonesia hasn't so far made any formal
request to hold an OPEC meeting later this year.

A senior OPEC delegate told Dow Jones Newswires: "We are already
planning to meet in Abuja in December, another meeting so close would
be nonsense. We are already meeting far too much."

Indonesian lawmaker Abdul Gafur said earlier Friday that his country
is seeking to host an OPEC summit in November.

OPEC will hold its next full ministerial meeting in Vienna Sept. 11.

OPEC's current president, Edmund Daukoru, who is also Nigeria's oil
minister, is widely expected to host an OPEC meeting in December in
Abuja.

--------------------------------------

Indonesia Dumai refinery running 60 pct-Pertamina

JAKARTA, June 23 (Reuters) - Indonesia's 120,000 barrel-per- day (bpd)
Dumai refinery is running at 60 percent capacity due to a technical
upset earlier this week, with two gasoline-making units shut
completely, a Pertamina official said on Friday.

Two platforming units that turn naphtha into gasoline -- one of 8,000
bpd and the other of 6,000 bpd -- are both closed down, Pertamina
processing director Suroso Atmomartoyo told reporters.

He said the technical fault occurred two days ago.

He said earlier this month that the smaller unit was due to be closed
for planned maintenance from around June 20, although that was not
meant to affect operations elsewhere in the plant.

Pertamina, which often has to increase spot fuel imports when it has
trouble with domestic refineries, hopes to resume full operations at
Dumai soon, he said, but gave no time frame.

"This is an emergency shutdown because cooling water is not working
about two days ago. We have repaired that and we have restarted the
CDU at 60 percent capacity," Atmomartoyo told reporters.

Another Pertamina official said unexpected shutdown of Dumai refinery
will certainly cut Pertamina diesel and gasoline output but not much.

"Pertamina has to make up its diesel output as a result of the
shutdown of Dumai refinery," the official, who declined to be
identified, told Reuters, adding that the company may take more diesel
imports in future.

Pertamina has an 85,000 bpd vacuum unit at Dumai refinery which is
also being shut.

The official said the vacuum unit and platformers unit are expected to
resume operation, possibly within five days.

A company official said earlier this week that Indonesia, which
imports as much as a third of its fuel due to a lack of domestic
refining capacity, would curb imports of oil products such as gasoline
and diesel, to 9 million barrels in July, partly due to lower demand
from state power utility PLN.

Industry sources had estimated Pertamina bought 12.36 million barrels
in June, its highest volume since December, after nearly half a year
of below-average imports thinned domestic stocks. Earlier this week,
Pertamina President and CEO Ari Soemarno told reporters that
Indonesia's average imports this year would fall by 75,000 barrels per
day from last year to 375,000 bpd. Indonesia, Asia-Pacific's only OPEC
member, has nine refineries with a combined capacity of around 1
million bpd, but they supply only about 70 percent of its domestic oil
products consumption. The rest is imported.

---------------------------------------------------------------

Indonesia to sell PGN stake this yr to meet 3 trln rupiah privatization target

JAKARTA, June 23 (XFN-ASIA) - The government may finally sell its
shares in PT Perusahaan Gas Negara (PGN) this year to meet the new
privatization target of 3 trln rupiah this year, an official said.

Said Didu, secretary to State Enterprises Minister Sugiharto, said the
ministry's priority is to implement the privatization plan which has
been approved by parliament.

"PGN's privatizatioon has been approved by parliament. If we can meet
the target from its divestment, then we do not need to sell the other
companies," Didu told reporters last night.

The government postponed the planned sale of a 7.1 pct stake in PGN
for around 1.0 trln rupiah last year because it had raised enough
money from other revenue sources to cover last year's state budget
deficit.

The government still holds a controlling 60 pct stake in PGN.

Earlier this year, the ministry said it may sell stakes in 20 firms to
meet the initial privatization target of 1 trln rupiah.

The target was raised to 3 trln rupiah, however, partly to finance a
wider budget deficit this year, which is now seen at 1.4 pct of GDP or
42.4 trln rupiah against the initial estimate of 0.7 pct of GDP or
around 20 trln.

--------------------------------------------------------------

Indonesia's Pertamina cuts June-July fuel 
supply ceiling amid low consumption

JAKARTA, June 23 (XFN-ASIA) - PT Pertamina said it has cut back its
fuel supply ceiling for the June-July school break to 175,000
kiloliters a day due to lower than expected consumption.

Pertamina had earlier decided to raise the ceiling for its daily fuel
supply by 12 pct to 185,000 kiloliters, basing this decision on
historical fuel supply demand.

"Until the third week of June, fuel consumption has yet to show signs
of picking up as the school break began. Daily consumption stood at
the level of 144,400 kiloliters or 22.2 pct of the ceiling," Pertamina
spokesman Mochamad Harun said in a statement.

He said until this week, consumption of premium gasoline stood at
43,300 kiloliters a day or 9.3 pct below the maximum supply limit,
while that of diesel fuel stood at 48,900 kiloliters or 35.6 pct below
the ceiling.

Nationwide fuel stock currently amounts to 4 mln kiloliters or equal
to 23.1 days of supply needs.

Pertamina is the sole distributor of subsidized fuel products, which
should not exceed the quota of 41.5 mln kiloliters this year.

------------------------------------

Indonesia's Renaissance on track for US$2.1 bln loans

SINGAPORE, June 22 (Reuters) - Indonesian bank Renaissance Capital has
generated enough demand for its planned US$2.1 billion loans needed to
fund a coal mine acquisition from Bumi Resources , a source close to
the matter said on Thursday.

The term loans, including a 5-year $1 billion senior loan, a 6-year
$600 million senior loan and an 8-year $500 million junior loan, would
enable Renaissance affiliate PT Borneo Lumbung Energi to complete its
$3.1 billion acquisition by the end of June.

Interest for the $1 billion loan with an average life of 2.6 years
would be 350 basis points over Libor <LIBOR=>, the source, who asked
not to be identified, told Reuters. The rate for the $600 million loan
with an average life of 5.6 years would be 500-550 basis points over
Libor, he said.

"Order books are looking good and investors are finalising the
approvals. Commitments are coming in," he said. "Junior investors are
there, terms are being finalised."

The fees to be paid out of loan proceeds to investors for the 5-year
loan is 0.4-1 percent of the subscription amount depending on levels
of loan participation, and 0.25-0.75 percent for the 6-year loan, he
said. The $2.1 billion loans marked the biggest borrowing by an
Indonesian firm since the 1997/98 Asian financial crisis. The
Singapore branch of Credit Suisse is the mandated lead arranger and
sole bookrunner for the senior facilities.

Credit Suisse may have approached around 140 investors globally for
the loans, and formal commitments are due by Friday, according to
report by debt market news service provider Reuters Basis Point.

Little-known Renaissance, headed by ex-accountant Samin Tan, kicked
off its road show for the loans in Sinapore early this month. The
tour, during which the Indonesian banker asked commercial banks for
the loans, ended in New York last Thursday.

Tan was not immediately available for comments.

Renaissance, which is not related to the Russian investment bank of
the same name, surprised markets in March by announcing it was buying
from Bumi all of PT Arutmin Indonesia and a 95 percent stake in PT
Kaltim Prima Coal (KPC), which together accounted for 37 percent of
Indonesia's 2005 coal exports.

The remaining $1 billion required for Indonesia's second-largest
takeover deal would be funded by equity, 70 percent of which is
provided by Singapore's United Overseas Bank through an exchangeable
bond.

Bumi, controlled by the family of Indonesian chief social welfare
minister Aburizal Bakrie, is diversifying into the oil and gas sector.
It is buying local energy company PT Energi Mega Persada Tbk in a
stock deal valued at $1.22 billion.

Persada shares were unchanged at 690 rupiah by 0800 GMT on Thursday,
below Bumi's offer of about 800 rupiah per share.

---------------------------------

Upstream
June 23, 2006

Bumi-EMP tie-up in Indonesian family

Indonesia's Bumi Resources is to acquire upstream compatriot Energi
Mega Persada (EMP) in a $1.2 billion deal that consolidates two
companies linked to the family of an influential politician, writes
Amanda Battersby.

The all-stock deal values EMP at 800 rupiah (8.5 US cents) per share,
about 19% above its pre-offer closing price.

Both EMP, which has exploration and production assets in Indonesia,
and Bumi, which has coal and mining operations, are part of the Bakrie
Group, which is controlled by the family of Welfare Minister Aburizal
Bakrie.

"The combination of Bumi's cash surplus and EMP's abundant undeveloped
gas reserves are the most fitting elements to create business synergy
and value for shareholders of both companies," a joint statement said.

EMP can use this cash - the first phase of its 100%-owned
Terang-Sirasun-Batur field development off Java, which is targeting
production start-up by 2008, will cost at least $275 million.

The companies admitted that one possible risk of the merger is the
loss of key EMP management personnel if employees do not accept roles
in the new entity. However, no compulsory lay-offs are envisaged
because of the tie-up.

Bumi will issue 14.4 billion new shares to finance the acquisition
while each EMP shareholder will have the right to convert their shares
to Bumi on a 1:1 basis. The new company will have a market
capitalisation of about $2.8 billion, making it larger than the
existing number-one oil and gas player Medco Energi.

The acquisition is subject to the approval of the companies'
shareholders, who are due to vote at extraordinary general meetings on
28 July. At least 50% of the independent shareholders will need to
attend these EGMs and give their approval because of the conflict of
interest relating to the "Bakrie link".

The companies' creditors have until 6 July to voice any concerns. The
deal is due for completion on 9 August.

-------------------------------------

The Australian
Saturday, June 24, 2006

East Timor missing at gas gabfest

Nigel Wilson

Alkatiri's shadow is haunting the meeting, Nigel Wilson reports

OVERHANGING the 12th annual SEAAOC meeting in Darwin this week was the
shadow of the man who wasn't there -- East Timor's first Prime
Minister, Mari Alkatiri.

SEAAOC -- the South-East Asia Australia Offshore Conference -- had for
months been promoting the attendance of Alkatiri as a keynote speaker.

The diminutive and feisty leader was a no-show, to the surprise of
few, considering the political turmoil in Dili. But significantly
there was no one at all from East Timor, an omission that indicates
the entirely political nature of the petroleum sector in that country.
Surprising, because the Timor Sea is one of the most active areas for
exploration and development in the Asian region.

East Timor itself has only recently announced the award of exploration
permits to Italy's ENI and Indian group Reliance. There is intense
interest in finding more oil close to the Laminaria/Corallina oil
reservoirs at the western end of the Timor Sea and there is continuing
debate over the future of the Greater Sunrise LNG proposals for gas
reserves straddling the Joint Petroleum Development Area between
Darwin and the East Timor coast. And there is the outstanding success
of the Bayu Undan gas recycling and LNG project in the JPDA.

Alkatiri is an aggressive advocate of East Timor hosting any
facilities processing Greater Sunrise gas. Since East Timor's
inauguration in 2002 he has been credited with a number of actions
that have led to the development of about 7 trillion cubic feet of
Greater Sunrise gas, about 400km northwest of Darwin, being consigned
to never-never land. East Timor has never ratified the international
unitisation agreement covering the ownership of Greater Sunrise, even
though it signed the document in 2002. Alkatiri, whose Fretilin party
has 55 of the 88 seats in the country's parliament, said more than
three years ago that he was not prepared to introduce the IUA because
"it would get only one vote: mine".

This reflects ongoing claims in East Timor that Australia has been
less than generous in its handling of petroleum reserves. In 2002 East
Timor announced a maritime boundary taking in all of the Greater
Sunrise fields, 80 per cent of which lie in Australian waters. Sunrise
was expected to be producing in 2007 or 2008.

The Australia Government demurred and the Greater Sunrise partners,
Woodside, ConocoPhillips, Shell and Osaka Gas, basically shut up shop
after spending more than $200 million on exploration, appraisal and
market development for an investment expected to be about $5 billion.

The Marxist Fretilin party believed East Timor was legitimately
entitled under international law to make the claim for all of Greater
Sunrise, and despite Alkatiri being warned by Australia that "100 per
cent of nothing is still nothing", this point took a long time to be
established as the basis for future negotiations.

In January this year Alkatiri in Sydney witnessed Foreign Minister
Alexander Downer and his East Timorese counterpart, Jose Ramos Horta,
sign the Treaty on Certain Maritime Arrangements in the Timor Sea
(CMATS). This envisaged that once Greater Sunrise proceeded it could
result in transfers of additional revenue to East Timor of as much as
$US4 billion over the life of the project. This would increase East
Timor's share of the resource to about $US10 billion. The deal was
contingent on East Timor suspending maritime boundary negotiations
with Australia for 50 years. The revenues under the treaty are
additional to the generous sharing arrangements within the JPDA, where
East Timor receives 90 per cent of revenue from production of
petroleum resources, which may be worth as much as $US15 billion, most
of which will come from the Conoco Bayu Undan project.

At the time it was stated East Timor would move swiftly to ratify
CMATS and the Greater Sunrise IUA. The assertion has again proved to
be another frustrating demonstration of East Timorese rhetoric.

Even before the Dili riots in April, corporate and government
officials in Australia predicted CMATS would not be ratified in Dili
before elections scheduled for May next year.

At SEAAOC, Laura Sugg, the new president of Conoco in Australasia, was
forced to concede that point after saying the company remained
"hopeful and confident this project (Greater Sunrise) will come
forward expeditiously."

Ms Sugg was positive about the potential of Greater Sunrise as a
source of gas supply for expansion of the Wickham Point LNG terminal
that dominates Darwin Harbour.

Darwin LNG is considering an expansion from a nominal 3.7 million
tonnes a year to at least 10 million tonnes, which is the current
environmental licence for Wickham Point. But Ms Sugg emphasised that
Conoco and its partners had another option as a result of the Caldita
discovery in the Timor Sea, but in Australian waters. Reserves
estimates have not been released for Caldita.

US-owned Conoco is the operator with 60 per cent and Australian
partner Santos has not thought it necessary to tell the stock exchange
what has been found. But Ms Sugg said an appraisal well would begin
drilling the Caldita prospect next month, after which the Darwin LNG
partners would have a better idea of whether Caldita had enough
reserves to supply one or two new production trains at Wickham Point,
suggesting a minium of 3tcf to 4tcf would be required.

Also buried at SEAAOC was the potential for Inpex's Abardi discovery
in Indonesian waters north of Caldita to be developed.

-----------------------------------------

Upstream
June 23, 2006

CNOOC kick-off in Sumatra

CNOOC Ltd has confirmed production start-up from the delayed first
phase development of gas reserves on its South-east Sumatra (SES)
production sharing contract off Indonesia, writes Amanda Battersby.

Output is being ramped up to the phase one contractual level of 55
million cubic feet per day of gas, which will be delivered from four
wells. The majority of the gas is being supplied to state-owned
utility Perusahaan Listrik Negara (PLN) for power generation via a new
85-kilometre subsea pipeline to PLN's power plant at Cilegon, West
Java.

Phase two of the project, which will boost plateau production to more
than 80 MMcfd of gas, is scheduled to come into operation early next
year. Most of the gas will flow from the Banyuwati and Zelda areas of
the block, which has been producing oil for more than 15 years.

The shallow-water gas project is located about 120 kilometres off the
province of West Java on Indonesia's most populous island.

Partners in the SES PSC are CNOOC Ltd, Inpex, Korea National Oil
Corporation, Orchard Energy, Talisman and Fortuna.

-----------------------------------------------------------------

Upstream
June 23, 2006

Serica prowls for Kambuna FPSO

By Amanda Battersby

Outfit seeking a leased floater for fast-track Indonesia project

Toronto-based independent Serica Energy is expected to approach
contractors soon for a leased floating production, storage and
offloading vessel for its fast-track Kambuna gas condensate field
development off Indonesia.

Kambuna will be exploited via the FPSO and dry wellheads as this
scenario is much cheaper for both drilling and production than a
subsea development.

Initial output is envisaged at 50 million cubic feet per day of gas
and 5000 barrels per day of condensate. Gas from the field will likely
be exported by pipeline to North Sumatra and gas sales negotiations
are under way.

Serica reckons that there will be a gas shortfall of up to 200 MMcfd
in the province of North Sumatra by 2010.

The Indonesian authorities have already given the green light to
Kambuna and production start-up from the field, located on the Glagah
Kambuna technical assistance contract, is expected in 2008.
London-listed operator Serica expects board approval soon.

The extent of the field and its reserves have yet to be determined and
a 3D seismic survey is planned for later this year to identify
possible extensions.

A second appraisal well (Kambuna-3) is due to spud next month while
development drilling is targeted to begin in the fourth quarter.

Meanwhile, Serica confirmed that it has, as expected, also submitted a
development plan for the Tanjung Perling field on its adjacent Asahan
production sharing contract.

Tanjung Perling could also come on stream in two years' time and the
operator believes that the discovery well alone could flow at more
than 50 MMcfd and 2500 bpd of liquids.

In the shorter term, Serica plans to explore for additional gas
volumes for both of these shallow-water field developments. The Togar
and Haruaya prospects are on the company's radar screen while leads
include Tohuk, Godang and Dongan.

The Togar-1 wildcat on the Asahan block is scheduled to be spudded in
August. Partners in the Glagah Kambuna technical assistance contract
are operator Serica, Duinord Petroleum, Jagen, Gunakarsa
Glagah-Kambuna Energi and Greevest. At Asahan, the co-venturers
comprise Serica, Medco Energi, RS Resources, Jagen and Greevest.

----------------------------------------------------------------

Upstream
June 23, 2006

Anadarko picks up deep-water assets in return for block stake

Chevron and Anadarko have agreed a swap of their Indonesian assets
that sees the US supermajor giving up stakes in five virtually
unexplored deep-water blocks off East Kalimantan.

Chevron will be divesting stakes in the Popodi and Papalang blocks,
non-operated equity in Eni's Bukat block - where wildcat drilling is
scheduled for later this year - as well as Ambalat and Muara Bakau.

It is understood that these interests were picked up through its 2005
acquisition of Unocal.

This acreage, most of it in deep water, is believed to have
significant gas potential.

However, companies are understood to be concerned about the likely
imposition of a new policy requiring them to commit at least 25% of
new gas production to the domestic market.

The Bontang (Badak) liquefied natural gas project in East Kalimantan
had historically offered a ready market for gas discovered off the
province and expansion of the eight-train facility was touted for
several years, but this is no longer the case.

As a result of the uncertainty over future gas export markets, Chevron
has already gone back to the drawing board on several deep-water field
developments off East Kalimantan that Unocal had been actively
progressing, an informed source said.

In return for these five high-risk but potentially high-reward stakes
ranging from 24% to 50%, Anadarko has agreed to give Chevron a 40%
stake in its 100%-held operated North East Madura-3 block.

Oklahoma-based Anadarko was awarded the 1 million-acre block in 2004.

The initial three-year exploration programme for North East Madura-3
includes the acquisition of 2560 square kilometres of 3D seismic and
the drilling of six wells. Up to four wells are planned to be drilled
on the block in 2006.

In the Makassar Straits blocks it is exchanging, Chevron holds 50% in
Muara Bakau, 33.75% in Ambalat , 33.75% in Bukat, 24% in Popodi and
24% in Papalang. Transfer of the equity interests is awaiting approval
from upstream regulatory body BP Migas.

-----------------------------------------------------------------------

Finders Resources says Wetar project 
has 10.7 mln tons of 2.4 pct copper

LONDON, June 23 (AFX) - Finders Resources Ltd said a scoping study has
confirmed the economic viability of the company's 64 pct-owned Wetar
Copper Project in Indonesia.

The company said Wetar had an indicated and inferred mineral resource
of approximately 10.7 mln tons grading 2.4 pct copper, 0.6 grams per
ton gold, 27 grams per ton silver and cut-off grade of 0.5 pct copper.

The estimated capital cost of the project is 105 mln usd wity an
estimated net present value of 90 mln usd.

Feasibility studies will commence immediately, to advance technical
and commercial aspects of project development, with a view to
commencing project construction in the fourth quarter of 2007.

Chief executive Chris Farmer said: 'The scoping study illustrates the
potential of Wetar, which we remain confident of exploiting. To this
end we have already started a full feasibility study of the project,
the next step on the road to production of Wetar's resource base

---------------------------------------------------------------

Churchill Mining Confirms High Calorific Coal At Sendawar

Edited Press Release

LONDON, June 23 (Dow Jones)--Churchill Mining said Friday that first
test results from 2 x 3kg coal outcrop samples gathered at its
Sendawar coal project in Kalimantan, Indonesia have confirmed the
presence of high calorific coal.

Coal with a calorific value above 6,300 Kcal/kg is deemed to be high
calorific value thermal coal and has a current potential sale value of
approximately $40.00 per tonne FOB (free on board, 6,300 Kcal/kg,
Mahakam delta area, Samarinda, East Kalimantan), as opposed to low
calorific thermal coal (<5,800 Kcal/kg) which is currently priced at
approximately $22.00/tonne FOB (Mahakam delta area, Samarinda, East
Kalimantan).

In addition, the Directors are encouraged by the low moisture and high
fixed carbon content in the samples.

The Company submitted the two batches of coal for sampling as part of
its program to understand structural controls in the area. To date
more than 72 areas have been profiled and mapped and this work is
ongoing.

Churchill now has 15 local and expatriate geologists at site exploring
the northern and eastern boundaries of its ground position which in
total covers more than 1,000 km2. These field operatives are being
logistically supported by a freshly-established base in the town of
Melak with ultimate co-ordination coming from the Company's
newly-created office in Jakarta.

The Company is currently considering four tenders for a 100 hole
diamond drilling programme which will run from the beginning of August
2006 to approximately the end of February 2007. The programme is a
first-pass exploration campaign to test prospective locations near its
northern tenement border.

---------------------------------------------------------------

Anadarko in 2 multibillion-dollar deals

OKLAHOMA CITY, June 23 (XFN-ASIA) - Oil and natural gas producer
Anadarko Petroleum Corp. announced two multibillion-dollar deals to
acquire smaller producers Kerr-McGee Corp. and Western Gas Resources
Inc., in a bid to boost its North American output and more than double
its annual sales.

Houston-based Anadarko will pay $16 billion in cash, or $70.50 per
share, for Oklahoma City-based Kerr-McGee. That represents a 40
percent premium over Thursday's closing price of $50.30 on the New
York Stock Exchange.

Anadarko also will pay $61, or $4.74 billion, to buy Western Gas
Resources, an independent natural gas explorer, and will assume $560
million in debt. That cash offer represents a 49 percent premium over
the company's closing stock price of $40.91 on Thursday.

"We are creating a combined company with industry-leading positions in
the deepwater Gulf of Mexico and the Rockies, two of the
fastest-growing oil and natural gas producing regions in North
America," Anadarko Chairman, President and CEO Jim Hackett said. "The
core assets being acquired strongly complement Anadarko's existing
properties, providing the scale and focus needed to deliver more
robust, predictable and efficient growth."

The hefty premium shows industry executives remain confident that
natural gas prices will remain higher than historical levels because
of robust demand and flattening output across North America. Imports
of liquefied natural gas are on the rise, but building the ships and
terminals necessary to support this side of the business takes years
and permitting has proven difficult.

Moreover, with the cost of exploration rising and companies having a
hard time gaining access to resources, analysts say acquisitions are a
quick and easy way for companies to grow.

In December, ConocoPhillips Co., the nation's third biggest energy
company, acquired oil and gas producer Burlington Resources Inc. for
$35.6 billion.

"This industry will continue to cannibalize itself because of limited
access to new resources," Oppenheimer & Co. analyst Fadel Gheit said.

Friday's news sent shares of Western Gas sharply higher to $59.80 in
electronic premarket trading, up $18.89, or 46 percent, from
Thursday's close. Kerr-McGee shares jumped $18.69, or 37 percent, to
$69.99 in premarket trading, while shares of Anadarko fell $3.64, or
7.5 percent, to $44.75.

Combined, the companies would have more than $17 billion in annual
revenue. Anadarko, which has 3,300 employees reported $7.1 billion in
2005 sales. Kerr-McGee revenue totaled $5.93 billion, and Wester Gas
Resources had $3.96 billion in 2005 sales.

Under the Kerr-McGee deal, Anadarko will assume debt and other
liabilities totaling $1.6 billion.

Hackett said Anadarko will review the consolidated assets to select
divestiture candidates, with the dual goals of paring
acquisition-related debt and refocusing the portfolio.

"All three companies have certain assets that we will likely deem to
be non-core once combined," he said.

Kerr-McGee's core properties are located in the deepwater Gulf of
Mexico and onshore in Colorado and Utah. The company has about 3,800
workers.

Western Gas Resources' producing properties are located primarily in
Wyoming. The Company also owns and operates natural gas gathering,
processing and treating facilities in major gas-producing basins in
the Rocky Mountain, Mid-Continent and West Texas regions of the United
States. The company's work force totals about 800.

Anadarko is one of the world's largest independent exploration and
production companies, concentrated in North America. It's operations
extend from the deepwater Gulf of Mexico, up through the western U.S.
and Canadian regions and onto the North Slope of Alaska. Anadarko also
has major positions in North Africa, the Middle East and Indonesia, as
well as exploration or production operations in several other
countries.

-------------------------------------------

Petromindo Headlines, 
Friday, June 23, 2006

Oil/Gas: 

-  Release: Cue Energy: 
  Drilling update Indonesia
- Dumai refinery operating 
  at 60% capacity
- Price of subsidized fuels 
  set by Pertamina too high: LP3ES
- Police point to negligence in 
  Lapindo's accident
- Energi Mega Persada reports 
  1Q profit
 
Mining:  
 
- Churchill says Sendawar project 
  has high CV coal
- Release: Southern Arc: Update 
  on exploration activities on Sumbawa 
  and Flores Islands properties 

Power: 

- Singapore’s Portek in S. Sumatra 
  power plant project
 
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Joyo Indonesia News Service
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