Pertamina EP offers 5 fields in KSO operation cooperation scheme

Pertamina EP has offered KSO operation cooperation in 5 fields, two in exploration stage and three in production, during the KSO Batch-4 launching on Tuesday. The two exploration fields are West Jambi 2 in South Sumatra and Bungalun-Kariorang in East Kalimantan, meanwhile, the three production fields are in Pabuaran of West Java, Tawun-Gegunung and Trebes-Sendang, both in East Java.

Pertamina EP's President Director Syamsu Alam said during the launch that the KSO offering was expected to support the company in meeting the targeted exploration and production performances. "Pertamina is giving the opportunity to partners to cooperate in developing the five fields, with priorities in financial and engineering aspects, while not abandoning the working security and safety as well as environmental awareness."

The schedule for administrative works for the offered KSO fields is as follow: Infomemo Access on August 1-September 30, 2011, Data Administrative Submission on August 1-September 30, 2011, Data Review on August 1-September 30, 2011, Data Access on August 1-October 4, 2011, and Bid Document Submission on November 3, 2011.

Information regarding the administrative process can be obtained by contacting PERTAMINA EP's Operation Cooperation Bidding Team in Graha Elnusa 5th floor, Jl. TB Simatupang Kav. 1B, South Jakarta 12560, with phone lines (021) 75882510, 7816770, fax (021) 75882511, 7816775, or visiting website: http://www.pertamina-ep.com

The period of cooperation agreement for the exploration fields expires at a maximum of 20 years. Partners will be required to submit Plan of Development (POD) for every commercial production finding to Pertamina EP for approval. The partners are entitled for a share in production and cost recovery if the production is declared commercial by Pertamina EP. If no sufficient reserves are found after three years of commitment period, Pertamina EP has the rights to annul the agreement.

The KSO operation cooperation in the production fields will expire at a maximum of 15 years. The partners are entitled for a share in the produced crude oil, based on a previously determined Floor Production. If the produced crude oil equals or below the Floor Production, the partners are not entitled for a share as the crude becomes Non Shareable Oil.

Up to now, Pertamina has KSO operation cooperation in a total of 16 fields in Sumatra, Java, Kalimantan and Papua. (godang)