ConocoPhillips studying possibility for extension of Corridor block contract

ConocoPhillips Indonesia is currently studying the possibility of seeking for an extension of its current contract over the Corridor block in South Sumatra which will expire in 2023, Bisnis Indonesia reported on Friday.

This was said by ConocoPhillips Indonesia Vice President for Development and Relations Joang Laksanto. ?We?re still studying (the possibility) furthermore. Our intention is to invest in Indonesia,? he said.

ConocoPhillips owns 54 percent interest in the block, while Repsol 36 percent, and state-owned oil and gas firm PT Pertamina 10 percent.

ConocoPhillips has previous sold a number of assets in Indonesia. It recently sold 40 percent interest in Blok B South Natuna to PT Medco Energi Internasional Tbk

According to existing regulation, oil and gas contractors can seek for contract extension 10 years prior to its expiry. In 2013, the contract was extended by the government for another 10 years, which means that ConocoPhillips can still apply for another 10 years of contract extension.

The block, which has seven gas fields and five oil fields, as per October of this year has average oil lifting of 7,263 bpd, while gas lifting stood at 809 mmscfd.

According to upstream oil and gas authority SKK Migas, gas lifting for the Corridor block is targeted to increase to 840 mmscfd next year from this year?s target of 807 mmscfd.

Editing by Reiner Simanjuntak