Report: Russia's Zarubezhneft to sell stake in Indonesia's Tuna block

MOSCOW, Jul 18 (PRIME) -- Oil and gas firm Zarubezhneft plans to sell its stake in Indonesia’s Tuna gas project after its British partner said sanctions were complicating their joint development, Reuters reported on Tuesday citing the upstream regulator.

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 a 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.

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 U.S. $3.07 billion up to the start of production in late 2022.

Harbour Energy on its website said subsequent progress had been impacted by E.U. 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 operation in Ukraine.

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

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.

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