Pertamina fails to take over ARCO's oil and gas block
Tuesday, December 5 2000 - 09:00 AM WIB
State oil and gas company Pertamina has thus far failed to realize plans to take over the operation of the X Ray Block offshore Indramayu, West Java from American firm Atlantic Richfield Company (ARCO).
Pertamina unveiled plans to take over the operation of the block almost a year ago but ARCO, which is now known as Beyond Petroleum (BP) after its merger BP-Amoco, is still operating the block.
Pertamina's foreign contractors management body (BPPKA) Sidick A. Nitikusuma confirmed that Pertamina had not yet managed to realize its plan and ARCO was still operating the block.
"I want to clarify that it is not a takeover plan, but a program in which ARCO has to relinquish the block to the government via Pertamina. The relinquishing program is still underway and there is not yet any decision," Sidick told Petromindo.Com Tuesday morning.
He did not however specify why ARCO was late in relinquishing the block.
He said once ARCO relinquished the block, Pertamina would let the directorate general of oil and gas at the ministry of energy and mineral resources to select the new operator of the block.
"If we are given the chance, we shall develop the block. But, if we are denied the chance, we shall not develop it," Sidick said.
Former exploration and production division head of Pertamina Robin Lubron, when unveiling Pertamina's plan to take over the block a year ago, said that Pertamina wanted to take over the block because ARCO had been neglecting the block for two years.
He said Pertamina expected to operate the block by itself as parts of its programs to increase its oil output to 240,000 barrels of oil per day (bpd) in 2004 from 70,000 bpd at present.
However Sidick denied that ARCO had been neglecting the block.
"It's not true that ARCO has been neglecting the block. The block is still being operated by ARCO, but activities there have been less intense," Sidick said.
X-Ray Block is reportedly now able to produce 3,000 bpd of oil and 100 million cubic feet of natural gas (MMCFD) of natural gas from its 20 wells. The block could produce up to 5,000 bpd at its peak production days. (Amoros)