Pertamina will be operating the block from August 2021 when existing operator PT Chevron Pacific Indonesia’s (CPI) contract ends.

“Share down is a must,” Arcandra said as reported by kontan.co.id on Wednesday, adding that the requirements would be stated in the terms and conditions for operating the Rokan Block, which only needed the signature of Energy and Mineral Resources Minister Ignasius Jonan to put it into effect.

Although the government required Pertamina to seek a partner to manage the block, it would not regulate the amount of the participating interest (IP) that would be released by the company, Arcandra said, adding that the share down agreement would be decided in a business-to-business scheme.

The ministry’s oil and gas upstream supervising director, Ediar Usman, said Pertamina’s partner could be the existing operator or another oil and gas company, which had experience in the upstream oil and gas business.

“All those oil and gas upstream companies that have experience could become Pertamina’s partner,” he said, adding that such a partnership was needed so that the company could maintain the production of the block because Pertamna needed technology and human resources support.

Arcandra added that as part of the effort to facilitate a smooth transition, Pertamina would be allowed to take part in the discussion for the Rokan Block’s work program and budget 2019 together with CPI. (bbn)

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