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Watch and learn: Government lectures Pertamina on block operatorship
“Pertamina will need to learn how to operate this block from now on and ensure production does not decline,” Jonan wrote on his Instagram account.
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Illustration photo for an offshore oil rig in the Mahakam Block. (Tempo/SG Wibisono)
S
tate energy giant Pertamina’s underperformance in managing the transition in the country’s lucrative oil and gas blocks has made the state take precautionary measures in the giant Corridor Block, onshore South Sumatra.
The government has the extended production sharing contract (PSC) for US energy giant ConocoPhilips in the Corridor Block, Indonesia’s second-largest gas producing block with 827 million standard cubic feet per day (mmscfd) of gas lifting in the first half.
The decision was made after the previous contract was handed over to Pertamina after it expired, the most infamous ones being the Mahakam Block from France’s Total Indonesie E&P and Rokan Block from the US’ Chevron, resulting in declining productivity of the blocks.
The arrangement of the Corridor Block contract extention will make Pertamina take charge of operations after 2026, although the PSC has been awarded to ConocoPhilips starting 2023 for 20 years.
The Upstream Oil and Gas Regulatory Task Force (SKK Migas) expressed hope that the decision could give time for Pertamina to learn from ConocoPhilips before taking full control as the operator.
“This is for the interest of our country, to maintain the optimization of our production and lifting. Hence, we need to ensure the best transition possible,” Dwi said, referring to overall oil production and ready-to-sell oil of the country’s blocks.
Instead of having full operatorship in the block like in previous giant deals of the Mahakam and Rokan blocks, Pertamina will only raise its stake from 10 to 30 percent and will take the operational helmet after 2026.
