Govt urges operators of expiring oil, gas blocks to maintain production

By Godang Sitompul

The Ministry of Energy and Mineral Resources has urged operators of oil and gas blocks whose contracts will expire this month to keep on working as usual in a bid to maintain production until the government decides on whether to extend the contracts or hand over the blocks to new operators.

This was said by Vice Minister of Energy and Mineral Resources Susilo Siswoutomo to Petromindo.com Wednesday.

?They should proceed with the operation (of the blocks) until the government makes a final decision soon,? he said.

There are two blocks whose contracts expired on November 27, 2013. They include the Siak block operated by Chevron Pacific Indonesia, and the Kampar block operated by PT Medco EP Indonesia.

The ministry said in a statement earlier that while the government has yet to decide on the fate of the oil and gas blocks whose existing contracts are about to expire including the Siak and Kampar blocks, in Riau, the existing operators have been asked to temporarily operate the blocks, for about 3-6 months, until the government appoints new operators or extend the contracts.

Director General of Oil and Gas at the ministry, A. Edy Hermantoro said that although the contract of CPI over the Siak block expired on November 27, the block?s current production rate of 1,800 bpd must not be affected by it.

Editing by Reiner Simanjuntak