STOCKS NEWS INDONESIA-Indika buys 10 pct stake in Papua oil & gas block

Thu Feb 21, 2013 12:47am EST

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Indonesia's PT Indika Energy Tbk will buy a 10 percent stake in West Papua oil and gas block from Indonesian unit of French oil major Total SA, Total said on Thursday.

Total E&P Indonesia West Papua will sell the shares of Southwest Birds's Head production sharing contract to Indika Energy's PT Indika Multi Daya Energi unit, but did not disclose the transaction amount.

"This transaction is a first step for developing a wider cooperation between Total and Indika Energy and demonstrates Total's ability to team up with quality local partners to explore and develop Indonesian Oil & Gas resources," Total's Indonesia CEO Elizabeth Proust said in the statement.

On Monday, Total E&P, the biggest producer of liquefied natural gas in Indonesia, has added its voice to complaints by U.S. oil giant Chevron that Indonesia's rules for overseas investors are hampering operations in the southeast Asian country. The move follows ExxonMobil's difficulties to renew its local CEO's work permit after the government accusing him of being uncooperative.

Shares of Indika were up 0.7 percent at 1,440 rupiah. The broader Jakarta Composite Index was up 0.19 percent.

1231 (0531 GMT)

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