CORRECTION: Pertamina wants to wholly own ONWJ
Monday, February 2 2015 - 11:33 AM WIB
(The previous article posted on Friday (January 30, 2015) contains several mistakes. Here is the correct version)
PT Pertamina Hulu Energi (PHE) has several times submitted requests to the government that its subsidiary PHE ONWJ may hold the operatorship and the entire ownership of ONWJ block offshore West Java after the current contract on the block expires in 2017, according to a senior Pertamina official.
The Pertamina source said in its proposal to the government, PHE ONWJ expressed intention to operate the block without any of the current partners.
Earlier, another source said IDX-listed oil and gas firm PT Energi Mega Persada Tbk (EMP), which is controlled by the politically-powerful Bakrie family, wants the government to appoint it as the operator of the block after its contract expires in 2017.
The ONWJ block is now operated by PT Pertamina Hulu Energi ONWJ (PHE ONWJ), with 58.28 percent interest. Its partners are EMP and Kuwait Foreign Petroleum Exploration Co. (KUFPEC), which hold the remaining 36.72 percent and 5 percent of interest, respectively.
Last year, Minister of Energy and Mineral Resources Sudirman Said decided to extend the contract on the ONWJ block ?provided that Pertamina has a bigger interest in the block?.
According to the second source, EMP was disappointed over the fact PHE ONWJ submitted a request for contract extension without consent from its current partners. EMP is not interested to remain in the block after its contract expires, unless the government appoints it to become the operator of the block.
Meanwhile, Jonly Sinulingga, GM of PHE ONWJ, said by the existing regulations, EMP may ask for a contract extension itself and propose to become the future operator of the block.
Editing by Johannes Simbolon