Pertamina EP delays joint operation deal with Chinese firm

PT Pertamina EP has delayed for an indefinite period a planned joint operation agreement with a Chinese firm 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, the Tempo daily reported Thursday.

The paper said that the joint operation with Geo Cepu Indonesia, a local unit of a Chinese company, was supposed to be officiated and effective as of Monday. Pertamina EP Spokesman Agus Amperianto said that the delay was made because ?there are a few things that need to be completed.?

Agus said that it was parent company PT Pertamina which made the decision to offer the four oil and gas fields in the Cepu block namely Globo, Kawengan, Ledok, and Semanggi to Geo Cepu Indonesia for joint development.

Pertamina Upstream Director, Husen said that the company needs the help of the Geo Cepu as Pertamina does not have the expertise in developing brownfields such as in the Cepu block. He said that the Chinese firm has the expertise and experience in applying enhanced oil recovery technology to optimize production at the four fields.

He added that it?s Pertamina?s strategy to partner with other companies as the company aims to expand at home and overseas. ?We?ll form partnership, because it?s impossible to go alone,? he said. (*)