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View all search resultsAll eight oil and gas blocks go to Pertamina
After months of assessment, the government finally gave state-owned company Pertamina the authority to operate eight oil and gas blocks, whose contract with existing operators have ended.
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Offshore rig belonging to Pertamina Hulu Energi (Antara/Zabur Karuru)
A
fter months of assessment, the government has given state-owned company Pertamina the authority to take over operations at eight oil and gas blocks with expiring contracts.
The eight blocks are North Sumatra Offshore, Ogan Komering, Southeast Sumatra, Tuban, East Kalimantan, Attaka, Tengah and Sanga-Sanga.
“After long discussions, all of them [eight blocks] are given to Pertamina,” Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) head Amien Sunaryadi said on Monday evening.
Amien added that the existing operators had been offered to continue their operatorship of those blocks but had rejected the offer.
He added that any oil and gas companies interested in jointly operating the blocks could directly talk to Pertamina in a business-to-business (B2B) framework.
Amien, a former anticorruption commission leader, added that the regional administrations where those blocks are located would get 10 percent participating interests, for which they would not need to pay upfront.
The regional administrations could pay for their shares once they received proceeds from the oil blocks in one year’s time or more, Amien said.
SKKMigas also said another 22 oil and gas working contracts (WK) would expire between 2019 and 2026. The regulatory body said it had informed operators of those 22 blocks and helped them make proposals for contract extension.
