Govt to sign several contract extentions in May
Friday, April 10 2015 - 12:48 PM WIB
The Ministry of Energy and Mineral Resources will sign the extensions of Offshore North West Java (ONWJ) along with several other blocks in May of this year, accoding to a senior official of the ministry.
Upstream Director Naryanto Wagimin said the ONWJ contract will be extended for another 20 years. The block expires on Jan. 19, 2017. The share composition in the new contract is 73.5 percent owned by state owned oil and gas firm PT Pertamina?s subsidiary PT Pertamina Hulu Energi (PHE), 24 percent owned by PT Energi Mega Persada (EMP) and 2.5 percent owned by Kuwaiti firm Kufpec. At present, the share composition is 58.28 percent owned by PHE, 36.72 percent owned by EMP and 5 percent by Risco Energy, a subsidiary of Kufpec.
?The government will have a better split in the new contract,? Naryanto said, without providing details.
The contract extension will be signed during the Indonesia Petroleum Association (IPA) annual congress in May.
Besides, the ministry will also sign the extensions of Kampar PSC for another 30 years and Gebang PSC for another 20 years on the same event. The contract extensions will be awarded to the existing operators.
The ministry will also sign the extension of the contract on Pase block for another 20 years. The contract extension will be awarded to the Aceh provincial goverment and it?s up to the provincial government to decide on its partner(s) to develop the block.
The Aceh govenrment set up a joint venture with Australian firm Triangle Energy Global Limited to to develop the block in 2013. The joint venture is called Aceh Pase Global Energy Pte Ltd, 75 percent owned by Triangle, 25 percent by a company owned by the Aceh government called PDPA. Recently, Triangle announced that the joint venture will continue operating the block after the contract?s extension.
Editing by Johannes Simbolon