Pertamina to operate X-Ray block in January 2001
Friday, December 8 2000 - 10:30 AM WIB
State oil and gas company Pertamina was expecting Beyond Petroleum (BP) to complete the relinquishing process of its X-Ray block offshore Indramayu, West Java this month that the state company would be able to start operating the block in January next year, a senior official of Pertamina said.
Head of exploration and production division Triana told Petromindo.Com on Thursday the relinquishing process of the block was still in progress, but he said he was optimistic BP would complete the process this month.
"There is no more problem in the relinquishing process. It is just a matter of time and administration," Triana said on the sidelines of a press conference at Pertamina's headquarters.
He said Pertamina was ready to take over the operation of the block.
"We've prepared everything to take over the operation of the block, including human resources, technology and financing," he said.
Under the production sharing contract system, contractors should relinquish its assets to the government via Pertamina if they stop activities there.
American oil and gas company Atlantic Richfield Company (ARCO), which has established a new company BP after merging with Anglo-American oil and gas giant BP Amoco, had reportedly "decreased" activities in the block for two years when Pertamina asked it to relinquish the block a year ago.
Under the new regulation introduced in November this year, all relinquished blocks should be first transferred to the directorate general of oil and gas at the Ministry of Energy and Mineral Resources, which will select new operators of the block.
Triana however said in the case of the X-Ray block, the block would not be first transferred to the directorate general of oil and gas. Instead, Pertamina will directly take over the block from BP.
"There is already a regulation (which permits Pertamina to directly take over the block)," Triana said, without specifying the regulation.
X-Ray can produce up to 3,000 barrels of oil per day.
Triana said the X-Ray block would become Pertamina's first offshore operation. (Amoros)