Pertamina evaluating prospect of East Kalimantan PSC
Wednesday, January 20 2016 - 01:54 AM WIB
State owned oil and gas firm PT Pertamina (Persero) will evaluate the prospect of East Kalimantan PSC including its remaining reserve, according to a senior official of the firm.
Chevron Indonesia Company, the current operator of the block, has decided not to ask for extension for East Kalimantan PSC which expires on Oct. 25, 2018.
"If its remaining reserve is still quite large and economical to develop Of course, we are interested in the block," Pertamina's Upstream Director Syamsu Alam told Petromindo.com.
He added that the company is likely to look for a partner to develop the block.
"But everything depends on the results of the evaluation on the subsurface as well as economic aspects in a comprehensive manner," he said.
Previously, Chevron IndoAsia Business Unit?s Managing Director Chuck Taylor said in a statement that Chevron won?t ask for extension for the block and will return the asset to the government of Indonesia on Oct. 24, 2018.
According to Yanto Sianipar, Senior Vice President Strategic Business Support at Chevron Pacific Indonesia, East Kalimantan PSC is an old block, now producing 60-70 mmscfd of gas and around 20,000 bpd of oil.
Based on the 2016 Work Program and Budget (WP&B-), the block will produce 14,470 bpd of oil this year.
Director of the Management of Upstream Activities at the Directorate General of Oil and Gas Djoko Siswanto said the government will first offer the block to Pertamina. If Pertamina is not interested, the block will be offered in an open tender.
Editing by Johannes Simbolon