Pertamina still awaits govt decision on West Madura block

State oil and gas company PT Pertamina (Persero) is still waiting for the government?s decision whether or not it will be allowed to operate the West Madura block in offshore East Java after the current contract ends in May this year.

Pertamina said in press statement on Saturday that its proposal to become the operator of the offshore block had been submitted nearly two years ago, but no response had so far been made by the government. According to Pertamina, the uncertainty related to the block?s future operation has caused a continued decline in its production from 19,000 barrels of oil per day (bpd) to only 14,000 bpd

Currently, Pertamina owns a 50 percent stake in the block with the remaining 50 percent jointly owned by South Korean-based firm Kodeco Energy and China-based firm CNOOC with a 25 percent stake each. The Korean company is the current operator of the block.

The government has promised to raise Pertamina?s stake in the block to 60 percent from 50 percent at present.

Pertamina spokesman Muchamad Harun said that the company?s board of directors appreciated the government?s plan to increase its stake. But the most important thing for Pertamina was to become the operator of the block, he said.

He said Pertamina had prepared a blueprint on how to develop the oil block and increase its production to 30,000 bpd from the current 14,000 bpd.

The government promised earlier that the fate of the West Madura block would be decided by March 31 this year at the latest. However no official decision has been made on the matter as of today. (godang)