Govt proposes division of participating interest in Siak block
Thursday, September 3 2015 - 02:41 AM WIB
Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources has proposed the participating interest in the Siak block in Riau be divided fifty-fifty among PT PHE, a subsidiary of state owned oil and gas firm PT Pertamina (Persero), and PT Riau Petroleum, a company owned by the Riau provincial administration.
"Now we are waiting for Pertamina and Riau Petroleum to discuss the proposal," an industry source told Petromindo.com.
When contacted, Upstream Director of Pertamina Syamsu Alam said to Petromindo.com that until now there has been no division of participating interest in the block Siak.
"We have been operating Siak block since last year, and so far there is no division of PI," said Syamsu.
On Oct. 27 of last year, upstream authority SKK Migas has issued a decree assigning Riau Petroleum to co-develop the Siak block together with Pertamina.
The previous contract on the block owned by Chevron Pacific Indonesia (CPI) expired on Nov. 27, 2013. The government however allowed the firm to continue developing the block until it decided on the new developer.
CPI has been managing the Siak block in Sumatra since 1963, when the company?s name at the time was PT California Texas Indonesia. The contract was renewed in 1991 for another 22 years.
On May 26, 2014, then Minister of Energy and Mineral Resources Jero Wacik signed a new PSC on the block with Pertamina, allowing the firm to operate the block for 20 years. The ownership of the block was then fully transferred to the state firm.
Editing by Johannes Simbolon