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Government to discuss Rokan Block contract with Chevron, Pertamina
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Energy and Mineral Resources oil and gas director general Djoko Siswanto (Courtesy of/migas.esdm.go.id)
T
he Energy and Mineral Resources Ministry will hold discussions with US oil and gas company Chevron and state-owned energy company Pertamina on Thursday before the government appoints an operator for Rokan Block, the country's most productive oil and gas block, next Thursday.
The ministry’s oil and gas director general, Djoko Siswanto, said in Jakarta on Tuesday that the ministry had told the two companies, which are competing to win the block, to submit detailed proposals that include project costs and technical overviews.
“We have asked the two to renew their proposals with more detailed information as soon as possible so that SKKMigas (Upstream Oil and Gas Regulatory Special Task Force) can start carrying out an evaluation,” he said.
Chevron Pacific Indonesia, the local subsidiary of Chevron, holds the current contract for Rokan Block, an exploitation site. It is set to expire in August 2021.
In proposals that were previously submitted by Pertamina and Shell, the companies explained that they would use enhanced oil recovery (EOR) techniques to increase the production rate of the block.
The government is committed to concluding negotiations over three ready-to-produce blocks that will expire in 2021, including Rokan Block, this month. The other two blocks are Bentu Segat and Selat Panjang.
Data from SKKMigas in April show that Rokan Block’s oil production stood at 210,280 barrels of oil per day while its gas production was recorded at 24.26 million cubic feet per day. (bbn)
