State-owned oil and gas giant PT Pertamina now legally owns the Kampar block following the signing of a production sharing contract (PSC)
tate-owned oil and gas giant PT Pertamina now legally owns the Kampar block following the signing of a production sharing contract (PSC).
The company took over the block through its subsidiary PT Pertamina Hulu Energi (PHE) Kampar, which signed the PSC on Monday with the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas), according to the Energy and Mineral Resources Ministry's acting head for public communications, Hufron Asrofi.
'Under the contract, PHE Kampar has a commitment in the first three years for the study of geology, geophysics, reservoirs and production as well as infill drilling on five wells and the drilling of one exploration well,' Hufron said.
He added that the commitment was valued at US$13.5 million.
The ministry in fact appointed Pertamina as the operator of Kampar last year. However, the drafting of the PSC took some time before being signed.
The Kampar block, located in Riau, was previously operated by PT Medco E&P. The block currently has 1,380 barrels of oil per day (bopd) in output.
SKKMigas spokesman Elan Biantoro said Pertamina would hold a 100 percent stake in the block. 'However, it then will decide whether to continue involving Medco and local administration companies to manage the block,' Elan said.
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