Pertamina wants to take over Kampar block, but Medco still wants to hold it
Wednesday, April 30 2014 - 07:12 AM WIB
State owned oil and gas firm PT Pertamina (Persero) has submitted letters expressing interest to take over the Kampar block in Riau, but PT Medco Energi Internasional Tbk, the temporary operator of the block, still wants to keep it for itself.
Contract on the block expired on Nov. 27, 2013. The government then decided to make the Kampar block an ?open area? and put the block under the management of PT Medco EP Lirik, a subsidiary of Medco over a transitional period of six months, until the government appoints the definitive operator of the block.
?Good news for us. We recently submitted a letter to the government where we expressed interest to take control of the Kampar block,? VP of Business Development at Pertamina Upstream Directorate Nanang S. Manaf told Petromindo.com, adding that previously the government appointed Pertamina as operator in the Siak block once a transitional period of six months has been completed.
Separately, Medco?s President Director Loekman Mahfoedz said to Petromindo.com that Medco still wants to continue operating the block.
?We still want to have the contract on the block extended. Of course we leave it to the government to assess our performance. So far we have managed to maintain production,? he claimed..
The Kampar block was initially part of South and Central Sumatra PSC. The PSC consists of two sections, namely South Sumatra Extension and Central Sumatra Kampar.
The latter is now known as Kampar block. Medco has obtained a contract extension for the South Sumatra Extension area for another 20 years starting Nov. 27, 2013 but the government delayed decision for the Kampar area. It remains unclear why the PSC has been divided into two contracts. The South and Central Sumatra PSC was signed by PT Stanvac Indonesia on July 5, 1993 and was effective for 20 years since Nov. 28, 1993. In 1995, the PSC was bought by PT Expans Nusantara, which was later renamed into PT Medco Energi Internasional. The Kampar block now produces around 2000 barrels per day of oil.
Editing by Johannes Simbolon