PetroChina seeks to extend presence in Tuban block
Tuesday, May 23 2017 - 02:19 AM WIB
Chinese oil, gas firm PetroChina is in talks with state oil, gas company PT Pertamina (Persero) to continue its participation in Tuban Joint Operating Body (JOB) block onshore East Java after the block?s current contract will expire in Feb 2018.
?PetroChina is ready to continue partnership with Pertamina even if the JOB scheme will no longer be applied and new gross split scheme will be in force,? Budi Setiadi, PetroChina Indonesia?s Government Relations and Support VP told Petromindo.Com recently.
The government will transfer the entire 100 percent interest in Tuban JOB block to Pertamina after the current contract expire and PetroChina will have to conduct B to B negotiation in order to retain its current 25% interest in Tuban JOB.
Under the JOB scheme Pertamina and PetroChina co-manage the operation of the block. The government has stated that new contract for the expired blocks will use gross split scheme, where cost recovery will no longer be applied.
Budi added that PetroChina is ready to participate in other expired blocks taken over by Pertamina. The government has recently announced that operation of 10 blocks which contract will expire in 2017 and 2018 will be given to Pertamina.
Editing by Reiner Simanjuntak