Pertamina urged to quickly decide on Ogan Komering PSC

Upstream oil and gas authority SKK Migas has urged state-owned oil and gas firm PT Pertamina to quickly make decision on whether it would proceed with plan to take over the Ogan Komering PSC in South Sumatra after the current contract over the block expires in 2018, Bisnis Indonesia reported on Thursday.

Muhammad Agus of SKK Migas South Sumatra Regional Office was quoted as saying that a swift decision by Pertamina is important to help maintain future production of the block.

?The principle is to prioritize Pertamina, but the company is still making assessment whether it will take over (the block) or not,? he said.

The government has asked Pertamina to take over eight oil and gas blocks including Ogan Komering PSC whose contracts are set to expire in 2017 and 2018.

The Ogan Komering block was initially operated by Talisman (Ogan Komering) Ltd and PT Pertamina Hulu Energi Ogan Komering, a unit of Pertamina, through a joint operating body (JOB). In March of this year, Singapore?s Jadestone Energy Inc. (JSE) through subsidiary Jadestone Energy International Holdings Inc. (Jadestone) acquired Talisman?s 50 percent interest in the Ogan Komering PSC.

According to Jadestone, production rate of the Ogan Komering block averaged 3,000 barrels of oil equivalent (BOE) per day (gross); approximately seventy percent oil and thirty percent gas. (*)