11 oil and gas blocks returned to the government

Contractors have returned a total of 11 oil and gas working areas to the government since 2006 due to among others economic reasons and the government has agreed to take back the blocks.

The 11 oil and gas blocks include the Nila block (which was awarded to ConocoPhillips), Asahan (ADP), Natuna D Alpha (ExxonMobil Natuna), Tanjung Jabung (Petronas), North Bali I (Santos), Offshore Madura Island (JOB Pertamina-Medco), Blora (Lundin), Bone (Energy Equity), Sakakemang (JOB Pertamina ConocoPhillips), Telaga Binjai (Sinopec Telaga Binjai) and Pasiriaman (JOB Pertamina Golden Spike), according to the Ministry of Energy and Mineral Resources in its website.

The contractors returned the blocks for various reasons, including that they failed to find hydrocarbon resources with economic value after fulfilling their investment commitment. Others have their contracts terminated because they failed to meet their commitment.

The ministry is currently processing the return of 12 other oil and gas blocks due to similar reasons.

Under the Oil and Gas Law No. 22/2001, cooperation contract holders are obliged to return their whole working areas pr gradually relinquish part of it to the government

Under the Governmental Regulation No. 35/2004, a contractor may return its whole working areas only after meeting their fixed exploration commitment and obligation under its contract.(godang)