Govt revokes contracts on two oil and gas blocks

The government has revoked contracts on two oil and gas blocks because the 10-year permits given to the holders to carry out exploration activities have expired.

 

"We have consulted with BPMIGAS (the upstream oil and gas regulatory body) about the contract revocation," Luluk Sumiarso, the Director Gneral of Oil and Gas at the Ministry of Energy and Mineral Resources, said in Jakarta Wednesday. He, however, refused to name the contractors of the two oil and gas blocks.

BPMIGAS Deputy Chairman for Planning Achmad Lutfi also refused to name the blocks but he said the blocks were located in Sumatra and Java respectively.

 

In addition to the two oil blocks, 15 other oil blocks also risk losing contracts this year due to the expiry of their 10-year exploration permits. According to data issued by the ministry, there are nine blocks whose exploration permits have expired. The exploration permit for the other six blocks will expire by the end of this year.

 

The nine oil blocks whose exploration permits have expired include Onshore and Offshore Madura Strait block (Husky Oil), Warim block, Papua (ConocoPhillips Warim Ltd), Blora block, Central Java (Lundin Blora BV), Asahan Offshore in North Sumatra (Asia Petroleum Development Ltd), Korinci Baru block in Central Sumatra (Kalila Ltd), Northeast Natuna (Titan Resources Indonesia Ltd), Onshore Madura Island (JOB Pertamina-Medco Madura Pty Ltd), Saliki block, East Kalimantan (Total Saliki), Tanjung Jabung, Jambi (Petronas Carigali).

 

The six oil blocks whose exploration permits are to expire later this year include Binjai block in North Sumatra; Sebuku block offshore East Kalimantan; Bengara II block in East Kalimantan; offshore Madura block; offshore East Kalimantan block and Wokam block offshore Papua. (godang)