BP Migas sets requirements for Pertamina's partners

The government has sets several requirements for investors interested to develop oil fields owned by state oil and gas company PT Pertamina.

One of the conditions is that they are not allowed to recover cost higher than the amount recovered by Pertamina.

?If today (the cost) is US$10 per barrel, we shall reject cost claim of higher than $10 per barrel,? head of oil and gas upstream authority BP Migas Kardaya Warnika said on Wednesday.

Another requirement is that Pertamina should not give its joint cooperation partners higher production share than the one given by the government.

Under the standard production sharing contract, contractors are entitled to 15 percent of their oil output, while the government takes the remaining 85 percent. As far as Pertamina is concerned, the government allows the state firm to take 40 percent of its fields? oil output.

?We don?t want Pertamina?s joint-operation partners to get more than the portion they will get if they cooperate with the government,? Kardaya said.

Pertamina is offering joint cooperation with local and foreign firms to develop its oil and gas fields in an effort to speed up the development of the fields, many of which remain underdeveloped or untapped. Pertamina?s officials earlier said hundreds of firms had voiced interests in the offer with some of them offering a swap scheme, under which they will get a stake in Pertamina?s fields and, in return, Pertamina will get a stake in their fields. (Godang)