TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Pertamina uses gross-split to manage eight oil and gas blocks
Change Size
Workers are seen on an offshore rig belonging to Pertamina Hulu Energi (PHE) 24 in East Java’s Madura waters. (Antara/Zabur Karuru)
T
he Energy and Mineral Resources Ministry has given full authority to state-owned energy company PT Pertamina to manage eight oil and gas blocks whose third-party are set to expire in 2018.
Pertamina upstream director Syamsul Alam said his company would use a gross-split sliding scale production sharing contract to manage the blocks.
“The block contracts that would be terminated would be managed using the gross split,” said Syamsu as reported by tempo.co on Tuesday.
The eight are the Tuban Block, the Sanga-Sanga Block, the Southeast Sumatra Block, the Ogan Komering Block, the North Sumatra Offshore Block, the Central Block, the East Kalimantan Block and the Attaka Block.
(Read also: All new oil and gas contracts must use gross-split)
According to Energy and Mineral Resources Ministerial Regulation No. 15/2015, Pertamina has special rights to manage the oil and gas blocks.
Energy and Mineral Resources Deputy Minister Arcandra Tahar said the right was given to Pertamina so that the company would own more than 50 percent of the shares in each block.
“It will strengthen the contribution of the company to national oil and gas production,” Archandra added.
Syamsu said his company has tried to prevent the decline of oil and gas production in the fields under its authority.
The production of several blocks like Sanga-Sanga, East Kalimantan, Central and Attaka that had not been managed by Pertamina have declined significantly in recent years because they have operated for about 50 years, Syamsu added. (bbn)
