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Pertamina required to invest $556.45m in eight blocks
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The Energy and Mineral Resources Ministry's oil and gas director general, Djoko Siswanto. (Courtesy of/migas.esdm.go.id)
T
he Energy and Mineral Resources Ministry is requiring state-owned energy giant Pertamina and its partners to pay a total of US$33.5 million in signature bonuses and make firm investment commitments worth $556.45 million within three years before taking over eight expiring oil and gas blocks this year.
The ministry has instructed Pertamina to take over the majority stake of eight upstream oil and gas blocks, all of which will see their contracts with current operators expire this year.
The blocks are Tuban, Ogan Komering, Sanga-sanga, Southeast Sumatra, North Sumatra Offshore, Tengah, East Kalimantan and Attaka.
Meanwhile the current contractors will still get a small portion of interest in their current respective blocks.
“We will soon sign the new contracts for the eight blocks once the contractors have paid the signature bonus,” the ministry’s oil and gas director general, Djoko Siswanto, said on Wednesday.
Then, Djoko said the contractors would need to deposit 10 percent of the total firm commitments to the government as the performance bond, which is expected to guarantee the investment realization in the eight blocks. The committed activities include geological and geophysical (G&G) study, seismic survey and exploration and exploitation drilling.
“If the realized investments within three years only reach around $100 million, for instance, we will demand all contractors pay for the unrealized investments worth more than $400 million,” Djoko said.
The biggest investments will come from Sanga-Sanga and Southeast Sumatra, each with committed activities worth $237 million and $130 million, respectively. (bbn)
