Pertamina separates upstream operations

BP Migas , the government’s regulatory body for oil and gas exploration and production, has formally separated the upstream operations of the state-owned oil and gas company Pertamina.

Under the new operational system signed in Jakarta on Saturday, Pertamina’s exploration and production activities would be operated by the newly established subsidiary Pertamina EP.

The separation of Pertamina’s exploration and production activities is in line with the new oil and gas law No: 22/2001 under which Pertamina is required to establish different companies to operate its oil and gas concession areas, and its downstream activities.

President director of the newly established PT Pertamina EP, Kun Kurnely , said that under the new system, PT Pertamina EP would operate its concession area independently.

“Like other oil companies such as Pertamina, the exploration and production activities are operated by an independent company, which has its own financial director,” he added.

The operation of the newly operated subsidiary was also marked by the awarding of 400-km concession area to PT Pertamina EP. In the new areas, Pertamina EP will carry out exploration activities on 12 oil wells, with investment of about US$51.8 million.

Also signed in the occasion was the contract for the operation of the Cepu oil block by PT Pertamina Persero and Mobil Cepu Ltd. The Cepu oil block will cover several oil fields including Banyu Urip, Cendana, Jembaran, Alas Dara, and Kemuning. (godang)