Local governments seek to takeover Tuban block

The East Java provincial administration and four regency administrations in the province including Bojonegoro, Tuban, Lamongan and Gresik signed on Wednesday a MoU to form a consortium that would acquire the Tuban oil and gas block when the contract of current operator, Joint Operating Body Pertamina Petrochina East Java (JOB-PPEJ) expires on February 28, 2018, Antara reported.

JOB-PPEJ has said it would not seek for an extension of the production sharing contract.

East Java Governor Soekarwo said that the planned consortium would acquire at least 55 percent of interest in the Tuban block, which spans the four aforementioned regencies, and becomes the operator.

The provincial and regency administrations currently hold a combined 10 percent participating interest in the block.

Soekarwo said that following the MoU, the local governments will apply a request with the Ministry of Energy and Mineral Resources to acquire the Tuban block when the current contract expires. (*)