Govt will sign 14 oil and gas cooperation contracts

The government will sign 14 cooperation contracts (KKS) with a dozen of oil and gas companies, including state-owned PT Pertamina, on December 12, the Investor Daily newspaper reported in its Friday edition.

The companies have recently won this year's tender to exploit several oil and gas working areas, said Novian M. Thaib, director of exploitation and exploration at the directorate general of oil and gas, in Jakarta on Thursday.

“As per the plan, the cooperation contracts will be signed on December 12. On the same day, the KKS will be signed with Pertamina,” Novian said.

According to Novian, 12 companies will sign the contracts. Unocal, the winner of East Ambalat oil field, and Pertamina -- which won an oil field South Sumatra – would also sign the cooperation contract.

The tender winners are Anadarko Petroleum Corp. (North East Madura III), Petronas (Carigali in North East Madura IV), PT Waropen Perkasa (Manokwari), PT Medco E & P Indonesia (Nunukan), Transworld Exploration Ltd. (Seruway), PT Tropik Energi Indonesia (Pandan), Altar Sociedade de Investimento Imobiliario, SA (Barito), Genting Oil and Gas Ltd. (North West Natuna), PT Binakarindo Yascoagung (Air Komering), PT Sele Raya (Belida), PT Easco East Sepanjang (East Sepanjang) and PT Kutai Etam Petroleum in (Seinangka-Senipah).

In case of Ambalat oil field, the government finally decided to sign the contract with Unocal after the Ministry of Foreign Affairs declared that Ambalat is in the Indonesian territory. Previously, the signing was delayed due to an ownership dispute with Malaysia.

From these contracts, the government has already received commitment to invest US$163 million for conducting studywell drilling and exploration in the first three years. The government also received a $17.25 million bonus. (*)