Pertamina awarded West Madura operatorship

Government on Thursday announced contract extension of West Madura Offshore block in East Java withy state oil and gas company taking 80 percent interest and operatorship.

The remaining 20 percent is given to previous operator South Korean company Kodeco Energy, Kardaya Warnia, expert staff at the ministry of energy and mineral resources said.

The block?s contract will expire on May 6, 2011 ands current contract will be good for 20 years, Kardaya said.

Previously, Pertamina held 50 percent stake in the block with the balance equally shared by Kodeco Energy, Chinese firm CNOOC Ltd and two little known local companies.

The contract extension of the block has become hot issue lately as Pertamina is pressing for 100 percent interest in the extended contract while at the end of the current contract life Kodeco and CNOOC sold half of their interest to two little known companies in an apparent bid to retain control in the block. To make the matter worse, regional government has also been voicing demand to be given participating interest in the block.

CNOOC this week has submitted letter saying that they quit the block as a protest to Pertamina?s attitude which CNOOC considered as inconsistent.

According to the government?s release, the block?s partnership has committed to conduct 8 exploration wells within the PSC with the value of US$58 million with total investment of $1 billion from 2011 to 2031.

The block is currently producing some 15,000 BPD of oil and gas supplied to East Java customers such as state oil, gas company PLN, state fertilizer firm Petrokimia Gresik, PGN and PT Media Karya Sentosa.(godang)