BPMIGAS awaiting Aceh administration?s decision on Pase Block

By Godang Sitompul

Upstream authority BPMIGAS is awaiting for Nangroe Aceh Darussalam provincial administration to decide on its participation in Pase PSC, which has seen contract ended in February but then extended for another six months pending its process of transfer to other contractor that is yet to be decided.

?The contract of Pase Block is not to be extended. But before there is any decision on the next operator, then the current operator Triangle Energy will temporarily stay as its operator,? BPMIGAS Planning Deputy Widyawan Prawiraatmadja told Petromindo.com in Jakarta on Friday.

?That?s the problem. It seems that all sides concerned under the Aceh administration are still divided on the local partner to join the consortium to manage the block,? he said.

He pointed out that such an uncertainty had discouraged potential investors to enter the energy asset. ?Perhaps, they can only be interested if they are asked by the Aceh provincial administration,? he said.

?Frankly speaking, Triangle is still very much needed as it is the most knowledgeable firm on the block. If it can cooperate with a local-administration-owned firm, then that will become a very ideal one. That?s why we hope the Aceh administration will resolve their internal conflict on this and come up with an agreement in selecting the local partner,? he said.

In February, BPMIGAS informed the Australia-listed oil, gas firm Triangle Energy (Global) Limited that its contract in Pase Block had ended, but it had allowed it to operate the block in Aceh for a further 6 months pending a decision on the PSC status.

The Pase PSC covers an area of 922km2 in Aceh. It was first granted in 1981 and has since been operated by Triangle Energy through its wholly owned subsidiary TPI since June 2009.

Editing by Benget Besalicto Tnb.