Chevron says authority to pick up deepwater blocks national partner lies in govt

US oil giant Chevron Corp. sad on Friday that it would have no problem to farm out 10 percent interest in East Kalimantan deepwater blocks to state oil and gas company PT.Pertamina Tbk, but said decision on who should get the share on the blocks lied in the hands of the government.

"Chevron, in conjunction with our joint venture partner ENI, has submitted the preliminary Plans of Development for the Ganal and Rapak PSCs to BPMigas for review prior to formal submission to Migas. Following Migas approval, the Government will select the national company that will be assigned the 10 percent national company participating interest as prescribed under the Oil and Gas law. This decision rests solely with the Government. Chevron has a long history of successful partnership with Pertamina. If Pertamina is the selected company, Chevron will respectfully honor that decision, " said Chevron Indo Asia Business Unit spokesperson in an e-mailed statement.

Pertamina Deputy Director Upstream Tri Siwindono told Petromindo.Com Thursday that the company is seeking to get 10 percent participating interest in Rapak and Ganal PSCs.

Tri said that the interest in the blocks is in line with regulation that allows Indonesian company to acquire 10 percent interest in any block prior to being developed.(godang)