E. Java seeks to partner with Riau firm in Tuban block
Tuesday, December 6 2016 - 02:05 AM WIB
The East Java provincial administration is seeking to partner with Riau provincial government-owned company PT Sarana Pembangunan Riau in its bid to take over the Tuban oil and gas block when the contract of current operator, Joint Operating Body Pertamina PetroChina East Java (JOB-PPEJ), expires on February 28, 2018, Bisnis Indonesia reported on Tuesday.
?The East Java Governor is serious to partner with PT Sarana Pembangunan Riau,? Head of Riau provincial administration?s energy and mining office, Syahrial Abadi to the paper, but did not provide further details about the plan.
Sarana is a contractor for the Langgak block in the province after it was released by Caltex.
As has been earlier reported, the East Java provincial administration and four regency administrations in the province including Bojonegoro, Tuban, Lamongan and Gresik have signed a MoU to form a consortium that would acquire the Tuban oil and gas block when the current contract expires.
East Java Governor Soekarwo said that the planned consortium would acquire at least 55 percent of interest in the Tuban block, which spans the four aforementioned regencies, and becomes the operator.
The provincial and regency administrations currently hold a combined 10 percent participating interest in the block.
PetroChina and Pertamina, however, have said they are seeking for an extension of the current contract. (*)