Govt to hold meeting with contractors on expiring blocks
Tuesday, February 2 2016 - 02:12 PM WIB
The Directorate General of Oil and Gas plans to summon a number of PSC holders into a meeting to discuss their plans over their contracts on blocks which expires in 2018.
In line with the existing regulation, PSC holders may apply for contract extension two years prior to the expiry of their contracts.
Director General of Oil and Gas IGN Wiratmaja said contracts which expire in 2018 are Tuban PSC, Orang Komering PSC, Sanga-Sanga PSC, Southeast Sumatra PSC, B Block PSC, NSO/NSO Ext. PSC. Tengah Block PSC and East Kalimantan PS.
Of all the owners of the expiring blocks, Chevron Indonesia has told the government it will not ask for extension of East Kalimantan PSC. It will return the block to the government.
?We shall invite seven PSC holders into a meeting this week. We want to know who among them wants to ask for contract extension or not,? he said.
He said Vico Indonesia, the operator of Sanga-Sanga PSC, has asked for contract extension. PetroChina has also informally asked for contract extension for Tuban PSC.
With regards several contracts expiring in 2017, on which the government has yet to make decisions, Wiratmaja promised the government will make decisions on them in the near future.
Editing by Johannes Simbolon