The Jakarta Post
State-owned oil and gas firm Pertamina may become the single operator of Rokan Block, one of the most productive units in the country, should its proposal be approved by the government, whose decision will be finalized this month.
Pertamina submitted its terms and conditions for operating Rokan Block last week.
The block is currently being operated by United States oil and gas giant Chevron, which has also submitted its extension proposal.
"We have submitted the proposal [for Rokan]. We see that operating 100 percent of the block is possible under a prevailing regulation," Pertamina upstream director Syamsu Alam told the press on Wednesday, referring to Ministerial Regulation No. 23/2018 on oil and gas block contracts that are set to expire.
Syamsu further said that Pertamina’s proposal was being evaluated by the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas).
Rokan Block, whose current contract is set to expire in 2021, will continue to operate under a new gross split scheme that took effect in January last year.
In its proposal, Pertamina also discussed the portion it would receive from the block’s profit, but Syamsu declined to provide further details.
"The government has its own calculation [for determining the split], whether it is a base split or progressive split," he said.
Data from SKK Migas shows that Rokan Block's oil production stood at 210,280 barrels of oil per day and its gas production at 24.26 million cubic feet (mmcfd) of gas per day. (bbn)