Govt accepts relinquishment of Rembang and Halmahera blocks

By Bernard Loebs

The government has approved total relinquishment and officially terminated the contract of two working areas, namely Rembang block which is located on the Java Sea, Central Java (operated by Mcube Petroleum Indonesia), and Halmahera block located onshore and offshore of the Halmahera Island, Maluku (also operated by Mcube Petroleum).

The Rembang block contract was terminated as the contractor failed to fulfill its commitment, while termination of the Halmahera block was due to exploration results showing further development would not be feasible.

Naryanto Wagimin, Upstream Director at the Energy and Mineral Resources Ministry, said the termination of Rembang was stipulated on Ministerial Note No. 1277/10/mem.m/2012 while Halmahera on Notes No. 1278/10/mem.m/2012. Both notes were dated February 16,

According to 2012 annual report of SKK Migas, up to 18 working areas are in the process of being relinquished, mostly due to the contractors failing to meet their commitment.

Editing by Dadan Wijaksana