Pertamina plans to enter Sanga-Sanga prior to expiry

By Bernard Loebs

State owned oil and gas firm PT Pertamina (Persero) plans to enter Sanga-Sanga PSC in East Kalimantan prior to the expiry of the contract on the block in order to ensure a smooth transfer of the block to the firm after the expiry of the contract.

?We want to chip in on the block before the contract expires in 2018. The efforts aim to ensure a smooth transition process so that operation performance and production level can be maintained,? Denie Tampubolon, Pertamina?s SVVP for Upstream Business Development, told Petromindo.com on Friday.

Denie explained that the chip-in scheme is something unprecedented. Pertamina used the scheme before it took over blocks from ExxonMobil in Aceh.

As part of the transition process, Pertamina has asked permission to see the block?s data room. According to Denie, PT Vico Indonesia, the current operator of the block, agreed on Jan. 22 to open the data room. The block?s contract expires in 2018 and Pertamina plans to take over the block once the contract expires.

Editing by Johannes Simbolon