Govt hands over Siak block to Pertamina

By Godang Sitompul

The government has decided to hand over the Siak oil and gas block in Riau to state-owned oil and gas firm PT Pertamina after the contract of Chevron Pacific Indonesia on the block expired on November 27, according to a source.

The source, who requested for anonymity, added that the government has also decided to make the Kampar block, also in Riau, as an ?open area? after PT Medco Energi Internasional Tbk?s contract expired also on November 27.

This means that any company can participate in a future tender to be held by the Directorate General of Oil and Gas to win the block.

The source said that Chevron Pacific Indonesia will temporarily operate the Siak block, probably for another six months, until the transfer process to Pertamina has been completed.

Vice Minister of Energy and Mineral Resources Susilo Siswoutomo declined to provide specific comment, requesting for patience. ?Handing over an oil and gas operation requires time, and plenty of legal and administration agreements,? he told Petromindo.com Thursday.

Editing by Reiner Simanjuntak