Chevron wants to continue operating Siak block

PT Chevron Pacific Indonesia wants to continue operating the Siak oil block after the current contract ends in 2013, because the block is still strategically important for the company?s operation in Riau.

"We are still interested to continue operating the Siak block because its function is very strategic for the company,? saud Usman Slamet, the general manager for policy government and public affairs said as reported by Antara.

The production sharing contract (PSC) for Siak block was signed in 1991 for 22 years until 2013. Before the signing of the PSC contract, Chevron operated the oil block under a contract of work signed in 1963.

Usman said the production of the production of Siak block was still lower than Rokan block's. However, the location of the Siak block was very strategic to integrate the whole operation of the company in Riau.

He however did not disclose if Chevron had already proposed an extension of contract to the government.

BPMIGAS has earlier encouraged the local government in Riau to take over the operation of the Siak block when the contracted ended in 2013. (*)