Chevron reappointed to operate Langgak block

BPMIGAS, the regulatory body for oil and gas exploration and production, has decided to reappoint PT Chevron Pacific Indonesia (CPI) to operate the Langgak oil block in Kampar and Rokan Hulu regencies, Riau, Media Indonesia reported Wednesday.

CPI's manager for policy, government and public affairs, Djati Sussetya said in Riau's provincial capital of Pekanbaru Tuesday that the oil company had been reappointed to operate the oil block for another one year.

"We have a received a copy of the recommendation letter from BPMIGAS on Chevron's reappointment as the operator of the Langgak block," Djati said, adding that the decision was made in order to prevent from the block's oil production from stagnating.

CPI's contract to operate the Langgak block which has a production capacity of about 400 barrels per day expires on Jan. 19, this year. The government has planned to transfer the block to a local company. Two companies have been proposed, that is PT Riau Petroleum and PT Sarana Pembangunan Riau. But, BPMIGAS and the Directorate General of Oil and Gas are still unable to take their pick.

The government took over the oil block from CPI after its contract to operate the oil block ended in January, 2005. The government planned to auction the oil block for further development but it later decided to delay the auction due to the internal conflicts within the provincial administration about the ownership of the oil block.(*)