Pertamina upstream director M.Husen said PHE, via PT PHE Siak, had begun to operate the Siak block after the official handover of three oil fields in the Lindai Field at midnight local time on Wednesday.

The start of PHE'€™s operating activities was marked with the official handover of a number of documents and ceremony revealing a board with the words '€œLindai Collecting Station'€ by PHE president director Tenny Wibowo.

PHE Siak now controls 100 percent of participation rights in the Siak block, Husen said in a statement in Jakarta on Sunday as quoted by Antara news agency.

Chevron managed the Siak block for six months during the transition period from Nov. 27, 2013, through to May 27 before PHE Siak officially took over the oil field.

On May 26, PHE Siak executive director Bambang Kardono and Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) acting head Johannes Widjonarko signed a partnership agreement approved by Energy and Mineral Resources Minister Jero Wacik.

'€œAfter a 6-month-long discussion, PHE Siak has officially taken over the management of Siak Block,'€ said Husen, who witnessed the signing of the agreement.

Siak produces around 1,800 barrels of oil per day. The block consists of three oil fields, namely Lindai, Batang and South Menggala.

'€œWe will immediately increase Siak'€™s production to 2,000 barrels per day,'€ said Tenny.

As an operator, PHE produces around 116,000 barrels of oil per day, 68,000 of which belong to the company. With Siak block, PHE expects to boost its production to around 71,000 barrels per day. (ebf)

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