Pertamina awaits govt decision on the future of West Madura contract

State owned oil and gas company Pertamina has asked the government to soon extend the contract on the operation of the West Madura block which would end in May, this year, saying that uncertainty over the future of its contract has caused a sharp decline in its production, Bisnis Indonesia reported Wednesday.

Pertamina?s spokesman M. Harun said in Jakarta on Tuesday that oil production at the block had declined to only about 13,000 barrels per day (bpd) from 19,000 bpd due to the uncertainty over the future of the contract on the oil and gas block.

?The government has yet to decide who will become the operator of the oil block although Pertamina has sent a letter five times asking the government to allow it to become the operator of the oil block because the existing contract will soon expire,? he said.

At present, Pertamina holds a 50 percent interest in the West Madura block, with its partners Chinese company CNOOC and South Korean company Kodeco holding 25 percent respectively. Pertamina has asked the government to increase its interest in the oil block to 60 percent and also allows it to become the operator replacing Kodeco.

Harun said production acvities would be further affected if the government continued to delay the extension of the contract of the oil block. (*)