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Pertamina signs Rokan contract, paves way for transition
Pertamina has become the official operator of the Rokan Block in Riau, allowing the state energy holding company to put the necessary investment into maintaining output after signing a new production sharing contract (PSC) with the government recently.
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A facility belonging to PT Chevron Pacific Indonesia in Minas, which is part of Rokan Block in Riau. (Antara/FB Anggoro)
Pertamina has become the official operator of the Rokan Block in Riau, allowing the state energy holding company to put the necessary investment into maintaining output after signing a new production sharing contract (PSC) with the government recently.
In a closed-door ceremony, which the government said was only an "administrative" matter, Pertamina officially became the new operator for one of the country's lucrative oil and gas blocks. The company has taken over the operatorship from US-based Chevron, whose contract will end in August 2021.
Rumors of the signing event had actually been circulating since Thursday morning, but officials in the Energy and Mineral Resources Ministry declined to comment.
However, it was not until Thursday night that Upstream Oil and Gas Regulator Agency (SKK Migas) chairman Dwi Soetjipto confirmed the rumor, saying it was needed to legitimize the transition.
"It's done. It's only an administrative matter. [...] Before making any transition-related moves, the government has to officially appoint [the operator] first, that's why we appointed it [with the PSC signing today]," he told the press.
Dwi, however, could not yet disclose the amount of the split, which is the agreed share composition on the block's oil and gas production, saying he needed to check it first.
