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Jakarta Post

Unclear transition policy undermines Rokan block production

  • Stefanno Reinard Sulaiman

    The Jakarta Post

PREMIUM
JAKARTA   /   Tue, April 9, 2019   /  04:51 pm
The Jakarta Post Image
An offshore platform belonging to Chevron Indonesia operates in local waters.(chevronindonesia.com/-)

The government has yet to issue a new contract to transfer the operation of the Rokan block from Chevron Pacific Indonesia (Chevron Indonesia) to state-owned energy holding company Pertamina, which it had promised to issue in January. The government appointed  Pertamina last year to take over the Rokan block's operation when Chevron Indonesia's contract terminates in 2021, but the delay in the new contract has caused uncertainty as to which company is responsible for providing investment during the transitional period. Chevron Indonesia, a subsidiary of the American energy company Chevron Corporation and the block's current operator, is unlikely to inject large funds in the block two years before its operating contract terminates. Chevron has been operating the Rokan block for more than 50 years. Meanwhile, Pertamina ...