Eight oil and gas contracts to expire in 2018

A total of eight oil and gas production sharing contracts (PSCs) are set to expire in 2018, according to Director General of Oil and Gas at the Ministry of Energy and Mineral Resources IGN Wiratmaja Puja.

Wiratmaja said in a statement issued Monday that a number of the oil and gas contractors have applied for contract extension, while others have decided not to continue with their contracts.

The eight oil and gas working areas whose contracts will expire in 2018 include Tuban, Ogan Komering, Sanga-Sanga, Southeast Sumatra, B block, NSO/NSO Extension, Tengah Block, and East Kalimantan, the statement said.

The statement added that the eight PSCs form part of the total 28 PSCs that will expire between 2017 and 2022.

For five contracts that will expire in 2017, the government has made decisions among others extending the contracts of the Mahakam and ONWJ blocks for PT Pertamina. Meanwhile, three contracts will expire in 2019 including Pendopo & Raja, Bula and Non-Bula working areas.

The statement said that there are five working areas whose contracts will expire in 2020 including Makassar Strait, South Jambi Block B, Brantas, Salawati Kepala Burung, and Malacca Strait. Three contracts will expire in 2021 including Bantu Segat, Rokan and Selat Panjang. Meanwhile, contracts that will expire in 2022 include Tarakan Block East Kalimantan, Coastal Plains Pekanbaru, Tungkal and Sengkang.

Editing by Reiner Simanjuntak