Govt hands over Gebang block to EMP
Thursday, November 12 2015 - 02:52 AM WIB
The government has handed over Gebang block to IDX-listed PT Energi Mega Persada Tbk (EMP), the current operator of the block, after state owned oil and gas firm PT Pertamina (Persero) pulled out of the block, according to a senior official at the Ministry of Energy and Mineral Resources.
"Gebang block was offered to Pertamina, but the state company was not interested. Finally it was to the existing operator. That means its contract will be extended," Director General of Oil and Gas at the ministry IGN Wiratmaja said.
According to him, the contract on the block is now ready for signing.
"All the terms and conditions of the contract have been completed. We are currently waiting for the payment of signature bonus and other financial requirements," said Wiratmaja.
Upstream Director Siswanto Djoko explained that after negotiations, it was decided the signature bonus payable by EMP is US$2 million and the signing is scheduled for Nov. 13, 2015.
The block, located in North Sumatra province, expires on Nov. 29, 2015. The block is operated by the Joint Operating Body (JOB) of Pertamina and EMP Gebang Ltd. The firms have equal stakes in the block.
Editing by Johannes Simbolon