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Handover of 12 blocks to save Pertamina’s finance: Minister
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Energy and Mineral Resources Minister Ignasius Jonan (Antara/Akbar Nugroho Gumay)
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nergy and Mineral Resources Minister Ignasius Jonan is optimistic the handover of 12 on-production oil and gas blocks is enough to give state-owned energy giant Pertamina a boost.
“The handover [of the 12 blocks] also shows the government’s commitment to making Pertamina the leading oil firm in terms of upstream production," he told a press briefing on Thursday.
The 12 blocks are Mahakam, Offshore Northwest Java (ONWJ), North Sumatra Offshore (NSO), Ogan Komering, Southeast Sumatra Block, Tuban, East Kalimantan Block, Attaka, Tengah Block, Sanga-Sanga, Pendopo-Raja and Jambi Merang.
Of the 12 blocks, Mahakam is the biggest deal as it is the country’s largest gas block.
In 2017, the Mahakam block produced 1,255 million standard cubic feet per day (mmscfd) of gas and 52,000 barrels oil per day, respectively accounting for 20 percent and 6 percent of Indonesia’s oil and gas lifting that year.
Jonan said the blocks were expected to increase Pertamina's contribution to national oil production to 40 percent next year from the current 20 percent.
“We hope Pertamina doesn’t stop at 40 percent, but rather intensifies its exploration activities to improve its production rate,” he said. (bbn)
