Repsol has yet to return part of oil concession areas

Production contractor of state oil and gas company Pertamina, Repsol-YPF should have first relinquished part of its oil concession areas to the government before the company sold them to China National Offshore Oil Corporation (CNOOC), Koran Tempo reported on Tuesday.

Director General of Oil and Gas Rachmat Sudibjo said in Jakarta on Monday that the government was still evaluating the size of the land areas that should be returned by Repsol.

?Although the oil concession area has been sold to CNOOC, it still has a problem especially related to the unproductive area,? he was quoted as saying.

According to the existing contracts, oil producers are required to return oil and gas fields, which were not exploited or not productive, to Pertamina on the behalf of the government. The area will then be offered to new investors.

Rachmat said that Pertamina had warned Repsol to return the unproductive and un-exploited areas to the government along before the acquisition but the company did not heed the warning.

CNOOC agreed last year to take over seven oil blocks owned by Repsol-YPF for US$585 million. The oil fields include South East Sumatra Block, North West Java Block, West Madura Block, Poleng Block, Jambi Merang Block, Blora Block, and South Sokang Block. Their production level is estimated to reach 150,000 barrels per day. (*)