PEP finalizes joint operation deal with Geo Cepu

By Febry Silaban

PT Pertamina EP (PEP), an upstream subsidiary of state owned oil and gas firm PT Pertamina, said a joint operation agreement with PT Geo Cepu Indonesia, a local unit of a Chinese company, for the development of four oil and gas fields in the Cepu block, which is located in the border areas of Central and East Java, has been finalized.

?Yesterday we?re only negotiating about the timing of cost recovery,? said President Director of PEP Adriansyah to Petromindo.com on Tuesday, without providing details about the timing of cost recovery.

He added that the timing of cost recovery is a supplement for signed contract.

As previously reported, PT Pertamina has appointed Geo Cepu to help PEP in developing four fields in Cepu block including Nglobo, Kawengan, Ledok and Semanggi. The Chinese firm is deemed to have experience and expertise in carrying enhanced oil recovery (EOR) technology to optimize production in the four fields.

Editing by Reiner Simanjuntak