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Energy Ministry rules on fate of 4 blocks
The Energy and Mineral Resources Ministry announced on Friday its decision regarding the fate of four oil and gas blocks whose operatorship has expired or is about to expire
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he Energy and Mineral Resources Ministry announced on Friday its decision regarding the fate of four oil and gas blocks whose operatorship has expired or is about to expire.
The four blocks are Pase block in Aceh, Kampar block in Riau, Gebang block in North Sumatra and Offshore North West Java (ONWJ) block in West Java.
Energy and Mineral Resources Minister Sudirman Said said his ministry had decided that Pase block's management would be handled by the local administration-owned company PT Perusahaan Daerah Pembangunan Aceh (PDPA).
'The company has held a 'beauty contest' to look for a partner to manage the block. It has chosen Triangle Pase, the previous operator,' Sudirman said.
Meanwhile, Kampar block will be given to state-owned oil and gas giant PT Pertamina, according to the head of the ministry's performance-controlling unit Widhyawan Prawiraatmaja. The contract for Kampar block, which was under the operatorship of PT Medco E&P Indonesia, expired last year. However, Medco was appointed to temporarily manage the block until a further decision was issued.
'Kampar working area will be given to Pertamina for a transition period ending in December 2015. We hope Pertamina will wisely include Medco and the local administration's firm in the ownership of the block,' Widhyawan said.
As for Gebang block, the ministry has decided to give it to current shareholder PT Energi Mega Persada.
Regarding ONWJ block, the ministry has decided to extend the working area contract. ONWJ is currently owned by Pertamina, which serves as the operator, Energi Mega Persada and Kufpec.
'We will extend the contract. However, we are asking that Pertamina gets a higher stake in the block,' Widhyawan said. (++++)
