TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Chevron signs $150m deal to extend life of vaunted Rokan oil block
Change Size
Chevron workers inspect an oil and gas facility at the Rokan Block in Riau on photos handed out in March. (SKK Migas/SKK Migas)
C
hevron has signed a deal with the Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) to drill between 112 and 118 new wells in Indonesia’s second-most productive oil block, Rokan Block in Riau.
The California-based oil company is slated to invest around US$150 million for the new wells, which, once drilled, would raise the block output by around 5,000 barrels per day (bpd), said SKK Migas head Dwi Soetjipto on Wednesday.
SKK Migas previously ordered Chevron to drill 11 new wells in the block this year. The remainder will be drilled in 2021. The exact number of wells and investment is projected to be finalized within 30 days.
“We hope Rokan’s transition can run smoothly and become a reference for other blocks’ transition,” Dwi told House of Representatives lawmakers in Jakarta.
SKK Migas is responsible for ensuring that the block’s output does not plunge during the handover to Indonesia’s state-owned oil and gas giant Pertamina. The handover is slated for August 2021, when PT Chevron Pacific Indonesia’s (CPI) right over the block expires.
Dwi added that 12 oil and gas blocks, including Rokan, were slated to change operators between 2020 and 2022.
