Minister signs termination of two PSCs
Thursday, October 16 2014 - 08:02 AM WIB
Interim Minister of Energy and Mineral Resources Chairul Tanjung has signed the termination of contracts on Banyumas block in Central Java and Buton block in Southeast Sulawesi after the owners decided to relinquish the blocks.
The Banyumas block was relinquished by Star Energy, and Buton block by Japex, according to Director of Upstream Business Oversight at the Directorate General of Oil and Gas Naryanto Wagimin told Petromindo.com.
The ministry will then evaluate the reserves of the two blocks based on exploration by both operators before putting them back into auction.
Naryanto said upstream authority SKK Migas has also recommended the termination of the contracts on three other blocks, namely Bengkulu PSC, Rombebai PSC and Sula I PSC after the operators decided to relinquish them. The minister however has to terminate the contracts as the Directorate General of Oil and Gas and the ministry?s Center for the Management of State Assets.
Agus Salim, Head of the Center for the Management of State Assets, said following the termination of the Buton and Banyumas blocks? contracts, the government will award the properties owned by both operators to the Buton and Banyumas regental governments.
Editing by Johannes Simbolon