PHE to operate Siak block

By Godang Sitompul

State-owned oil and gas firm PT Pertamina (Persero) will assign its subsidiary PT Pertamina Hulu Energi (PHE) to operate the Siak block in Riau after the parent firm was appointed by the government to take over the block from Chevron Pacific Indonesia, whose contract expired on November 27.

Pertamina insisted on being the single owner and operator of the block. ?Pertamina wants 100 percent, but it?s up to the government of Indonesia if local administration-owned company will be involved,? said Director for Investment and Risk Management at Pertamina, Afdhal Bahaudin to Petromindo.com Monday.

?PHE will probably be assigned to manage the block and sign the contract,? he said.

A source told Petromindo.com that local government-owned companies called PT Riau Petroleum and PT Bumi Siak Pusaka have approached Pertamina to be involved in managing the Siak block.

Meanwhile, Upstream Director at Pertamina, Mohammad Husen told Petromindo.com Monday that the company would prepare strategic measures to expand exploration and exploitation activities at the block. He declined to disclose the planned measures.

Editing by Reiner Simanjuntak