Bakrie, Medco eyeing Siak block

In addition to Riau administration-owned company, PT Medco Energi Internasional and Bakrie Group, have also expressed interest to take over the operation of the Siak block in Central Sumatra from the current operator PT Chevron Pacific Indonesia (CPI).

Upstream oil and gas regulator BPMIGAS?s spokesman Elan Biantoro said in Jakarta Tuesday that CPI?s contract over Siak block would expire in 2013.

A number of companies including a Riau administration-owned firm, Bakrie and Medco had expressed their willingness to take over the operation of the oil block, he said.

?But they have to compete with Chevron because it still wants to extend its contract on the block,? he said, adding that the American giant firm had already submitted its application for the contract extension.

Last week, Elan said that the proposal submitted by CPI was not valid as it did not attach specific plan about the block?s development and investment commitment, which will justify the granting of contract extension.

Siak is part of several oil blocks operated by Chevron in Riau province. Siak block produces around 2,000 BPD of oil, with significant upside potential, Elan said in Jan 13.

Under the Indonesian production sharing contract system, contractor whose contract will expire must submit proposal to BPMIGAS for contract extension. BPMIGAS, will evaluate the proposal and make recommendation to the Ministry of Mineral Resources, which holds authority to extend the contract.

When contacted by Petromindo on Wednesday, Medco?s official confirmed that the firm is interested to become the block?s operator. Bakrie?s officals can?t be contacted. (godang)