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Jakarta Post
The Jakarta Post
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Five oil contractors seek contract extension: Ministry official

  • News Desk
    News Desk

    The Jakarta Post

Jakarta | Tue, May 15, 2018 | 11:59 am
Five oil contractors seek contract extension: Ministry official Oil and gas director general Djoko Siswanto of the Energy and Mineral Resources Ministry. (Courtesy of/migas.esdm.go.id)

Five out of six existing oil contractors have submitted their proposals to extend their contracts to operate various oil blocks, according to an Energy and Mineral Resources Ministry official.

“All existing contractors have submitted their proposals, except Conocophillips. The company will submit its proposal with a gross-split scheme,” the ministry’s oil and gas director general, Djoko Siswanto, said in Jakarta on Monday as reported by kontan.co.id.

He added that Conocophillips currently operated South Jambi Block.

Under new government regulations, oil and gas contractors are required to change their contracts from cost recovery to a gross-split scheme.

The five contractors that have submitted their proposals are state-owned oil and gas company Pertamina for Salawati Block, PT Energi Mega Persada for Malaka Strait block, Chevron Indonesia for Makassar Strait Block, Petrogas for Kepala Burung Block and Lapindo Brantas Inc. for Brantas Block.

Djoko said Conocophillips, whose contract expires in 2021, had until June to file its proposal in time for the government to make its decision.

Companies with contracts expiring in 2022 will have until July.

Previously, Djoko said the existing contractors would not automatically win their contract because they had to compete with other companies interested in operating the oil blocks.

Chevron Indonesia, for example, is in competition with Pertamina to secure Rokan Block in Riau province, whose contract expires in 2021. (bbn)

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