BPMIGAS proposes termination of Wokam and Saliki contracts

The Upstream Oil and gas Regulatory Body (BP MIGAS) has proposed the government revoke the contracts on the two offshore oil and gas blocks, Wokam in  Papua and Saliki in  East Kalimantan because the contractors' 10-year-exploration rights have expired.

 

BPMIGAS’ deputy director for planning Achmad Lutfi said that the agency had sent a letter suggesting the government revoke the contracts because the 10-year-exploration rights had expired and the contractor had yet to submit a plan of development (PoD).

 

There were several other blocks whose contractors have yet to submit PoD despite that their exploration rights had ended. But, the agency still give time for the contractors to submit the PoD.

 

“(The contractors of) other blocks (whose exploration rights have also expired) have promised to submit their PoD. If they (the contractors) submit the PoD, we will put them into consideration, he said.

 

However, Lutfi said that the final decision whether to revoke or extend the contracts of the two blocks would be made by the government.

 

The Wokam block is operated by Korea National Oil Corporation (80 %) with Frontier Wokam Corporation (20%) as partner, while the Saliki block is operated by Total E&P (50%) in partnership with Inpex (50 %) (Bernard)