Govt signs Siak PSC with Pertamina
Friday, May 30 2014 - 06:26 AM WIB
Minister of Energy and Mineral Resources Jero Wacik signed on May 26 the Siak Production Sharing Contract (PSC) in Riau with state owned oil and gas firm PT Pertamina (Persero).
Vice President of Business Development at Pertamina Upstream Directorate Nanang S. Manaf told Petromindo.com on Wednesday that the PSC is now 100 percent owned and operated by Pertamina under a 20-year contract.
A planned partnership with Riau Petroleum in managing the Siak block is still in the process of discussion, and has yet to decide on the size of interest to be allocated to the Riau province-owned company.
The government decided to hand over the block to Pertamina after the contract of PT Chevron Pacific Indonesia (CPI) in managing the block expired on Nov. 27, 2013. CPI was allowed to temporarily operate the block for six months, until the transfer process to Pertamina has been completed.
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.
Editing by Reiner Simanjuntak