Govt evaluating several proposals for contract extensions

By Godang Sitompul

Energy and Mineral Resources Vice Minister Susilo Siswoutomo said that the government is evaluating a number of proposals of oil and gas contract extensions from the production sharing contractors (PSC).

Speaking to reporters in Jakarta on Friday, the vice minister admitted that one of the proposals is an extension proposal for Siak Block in Riau province.

"The Siak Block is also being evaluated. We?ve got inputs from upstream authority SKK Migas. There are also companies interested to take over,? Susilo said.

According to him, the government will only take decisions after conducting comprehensive evaluations. ?What important to note is that in any decision we take we will always prioritize our national interests. We will make sure that national companies will be involved and the state will get the maximum benefit from any oil and gas block,? he added.

He explained that the government will also consider to involve the current contractors in the blocks under evaluations.

?The current PSC contractors are well-informed about their blocks, they already know how to continue their production. It is not the case with new ones who will need some time before they become ready to continue production,? he said.

Before the end of contracts, every PSC should make sure that production continues as usual. ?While waiting for decisions to extend or not, the PSC contractors should continue their production,? he said.

According to him, SKK Migas has also provided some proposals regarding technical things on production.

He also cited the possibility of PT Pertamina's involvement in managing the blocks after being extended. ?We will also make sure that all blocks are subject to prevailing procedures, whether being extended or not,? he said.

Editing by Benget Besalicto Tnb.