Govt extends contracts in four oil, gas blocks

Upstream oil and gas regulator BPMigas revealed Wednesday that the government had extended contracts with four production sharing contract (PSC) holders in 2011.

The four PSC holders were Camar Resources Canada for the Bawean block in East Java, PT Medco E&P Malaka for Block A in Aceh, Husky Oil (Madura) Limited for the Madura strait block and PT Medco E&P Indonesia for the South Sumatra Central Sumatra Area block.

“The government has extended contracts with those PSC holders,” said BPMigas spokesperson Elan Biantoro over the phone.

In addition to the four blocks, the government will also extend the contract of the West Madura offshore block, currently operated by Korea-based Kodeco Energy. The contract will expire on May 6.

BPMigas has recommended that the government grant the right to operate the block to state oil and gas firm PT Pertamina.