Govt okays W. Madura block contract extension

Government signaled on Wednesday that it would extend the contract of West Madura PSC offshore East Java for another 20 years.

?Contract extension will be approved this month,? Director General of Oil and Gas at the Ministry of Energy and Mineral Resources told reporters.

The block?s current contract will expire in May this year.

The block is currently operated by South Korean firm Kodeco Energy, which has 25 percent interest in the block. Chinese firm CNOOC controls 25 percent stake with state oil and gas company PT Pertamina owning the remaining 50 percent.

Evita said the government has agreed to increase Pertamina?s interest in the block, but did not give detail. Evita also said that the government has yet decided whether to keep Kodeco as operator or to give the operatorship to Pertamina, as demanded by the state oil, gas company.

Currently the block produces 15,000 BPD of oil and gas. (bernard)