Russia's Zarubezhneft to Sell Stake in Indonesia's Tuna Block - Regulator

OIL AND GAS - JAKARTA. Russian oil and gas firm Zarubezhneft plans to sell its stake in Indonesia's Tuna gas project, the upstream regulator said on Tuesday, after its British partner said sanctions were complicating their joint development.

Zarubezhneft is partnering British firm Harbour Energy, to develop the offshore gas field, located off Indonesia in the South China Sea.

"ZN (Zarubezhneft) Russia will farm out, it is being processed. Of course Harbour will meet new partner, but we do not know yet who will that be," Benny Lubiantara, a senior official at Indonesia's upstream regulator SKK Migas, told a press conference.

Read Also: Dollar Teeters Near One-Year Low; Euro Climbs to 17-Month Peak

Zarubezhneft did not immediately respond to a request for comment.

SKK Migas approved the first plan of development for the Tuna offshore gas field with total estimated investment of $3.07 billion up to the start of production in late 2022.

Harbour Energy on its website said subsequent progress had been impacted by European Union and British sanctions on Russia "which limit our ability as operator to provide certain services to Russian entities".

The European sanctions were imposed as a response to Russia's invasion of Ukraine, which Moscow calls a special military operation.

"Harbour is now assessing its options with regards to Tuna to enable the project to progress," it said.

Read Also: Microsoft in Talks to Extend Deal Contract With Activision

The Tuna field is expected to reach peak production of 115 million standard cubic feet per day (MMSCFD) gas in 2027 which will be exported to Vietnam, where Harbour owned an existing gas processing facility.