Govt to seek new operator for Pase block in Aceh

By Godang Sitompul

Upstream authority BPMIGAS said the government will seek a new production sharing contractor (PSC) to operate the Pase block in Aceh, which is currently operated by Austalian energy company Triangle Energy. The move indicates that the government may not renew Triangle?s contract.

?Triangle Energy?s contract on the Pase block will expire on February 23, 2012,? Rudi Rubiandini, Deputy for Operation of BPMIGAS, told Petromindo.com. The government however is yet to find a new operator. Therefore, BPMIGAS has given authority to Triangle Energy to continue operating the block for another six months until the new operator is identified, said Rudi.

Triangle Energy?s wholly owned subsidiary Triangle Pase Inc (TPI) submitted a 20 year renewal application for its Pase PSC on 5 February 2010.

Earlier, BPMIGAS had stated that the government might renew Triangle Energy?s contract. Rudi?s aforementioned statement however indicates that the government has changed its mind.

As Aceh is an autonomous special region, local support is important in order to obtain approval for the renewal of the Pase PSC. However, up until today Triangle has not been able to get support from the local government.

Rudi noted that local government is interested in having a participating interest in the block. Therefore, the new operator should accommodate the local government interests.

An industry source told Petromindo.com that Mandiri Oil, a private oil and gas company, is interested in becoming the operator of the block. However, Rudi Rubiandini said he has not received any formal expression of interest from the company.

Editing by Roffie Kurniawan