The Jakarta Post
The Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) has called on state-owned energy giant Pertamina to ensure the smooth transition of Rokan Block operations from PT Chevron Pacific Indonesia (CPI).
SKK Migas chairman Amien Sunaryadi said in Jakarta on Tuesday that a smooth transition was important to prevent further decline in the block’s productivity.
The government granted Pertamina the right to operate the country’s most productive oil block in Riau after 2021, when CPI's operatorship expires.
SKK Migas' April data for the Rokan Block recorded oil production at 210,280 barrels of oil per day (bopd) and gas production at 24.26 million cubic feet per day (mmcfd). Its estimated recoverable reserves ranged from 500 million to 1.5 billion barrels of oil equivalent (boe).
Separately, Pertamina upstream director Syamsu Alam said that before talking about increasing the production from new potential reserves, the company would first look at ways of preventing further decline in the block's oil and gas production.
“We will discuss transitioning the operation with Chevron soon, as we want to start the [process] two years before their contract ends [in 2021],” he said.
Earlier, Energy and Mineral Resources Deputy Minister Arcandra Tahar said that the government chose Pertamina as the winning bidder because its proposal was “much better” than the one from CPI, a wholly owned local subsidiary of US energy firm Chevron. Arcandra stressed that the decision was based on technical rather than nationalist considerations. (bbn)