PetroChina still interested to continue operating Tuban block
Wednesday, November 30 2016 - 02:59 AM WIB
Petrochina
PetroChina is still interested in continuing its partnership with PT Pertamina Hulu Energi (PHE), a subsidiary of state-owned oil and gas firm PT Pertamina, in operating the Tuban block, in East Java, after the current contract expires on February 28, 2018, Bisnis Indonesia reported on Wednesday.
?PetroChina is still interested in continuing the partnership with Pertamina in managing the Tuban block after the contract expires in February 2018,? said Vice President for Partnership & Government Relations at PT PetroChina International Indonesia, Budi Setiadi.
PetroChina in partnership with Pertamina through Joint Operating Body Pertamina PetroChina East Java (JOB-PPEJ) operates the Tuban block, which currently has production rate of 28,000 bpd of oil from the Mudi and Sukowati fields, the paper said.
This paper reported earlier in November that the East Java provincial administration and four regency administrations including Bojonegoro, Tuban, Lamongan and Gresik signed a MoU to form a consortium that would acquire the Tuban oil and gas block when the contract of current operator, JOB-PPEJ, expires in 2018. East Java Governor Soekarwo said at the time that the consortium wants to have at least 55 percent interest in the block.
Meanwhile, Bisnis Indonesia quoted PHE President Director Gunung Sardjono as saying that the company has also sent a proposal to the Ministry of Energy and Mineral Resources over its interest in managing the Tuban block after the current contract expires.
He said that the company is also interested in continuing managing the Ogan Komering block when the current contract expires in 2018. The block is currently operated by the JOB Ogan Komering Pertamina-Talisman.
Gunung, however, said that the future operations of the two blocks would no longer be based on JOB mechanism but through normal production sharing contract mechanism. As such, when the current contracts expire, the blocks would be returned to the government, and that existing partners interested in them will have to acquire interest in the blocks. (*)