Govt still evaluating Siak Block contract
Wednesday, February 6 2013 - 02:07 AM WIB
Director General of Oil and Gas Edy Hermantoro said that the government is currently still in the process of making internal evaluation to determine the fate of the Siak Block in Riau as the contract of current operator PT Chevron Pacific Indonesia will expire on November 27, 2013.
He said that the government wants to first make a comprehensive evaluation process from various aspects, including the remaining potential of the block and the performance of the current operator, before deciding on whether to extend Chevron?s contract.
?We are still internally evaluating the contract of Siak Block,? he said on Tuesday, adding that if the Ministry of Energy and Mineral Resources could not yet complete the evaluation process by the November deadline, Chevron would be allowed to continue operating the block for a while.
Chevron has requested for the government to extend its current contract over the block, which produces about 1,600-2,000 bpd of oil.
The company reportedly plans to carry out an enhanced oil recovery program at the Batang field in the block if it gets a contract extension of more than 20 years.
Editing Reiner Simanjuntak