Repsol interested to continue partnership in Jambi Merang block
Friday, November 17 2017 - 05:32 AM WIB
Repsol Indonesia is interested to continue its partnership with state-owned oil and gas firm PT Pertamina in developing the Jambi Merang block in Jambi Province after the current contract expires in 2019, according to a source.
The source told Petromindo.com that Repsol is ready to adopt the gross split scheme in the upcoming new Jambi Merang block contract.
The source added that Repsol has no objection to the government?s policy to apply the gross split scheme in oil and gas contracts, and in fact the company is also ready to apply the new scheme in its other working areas, namely North Merangin in Jambi, and South Sakakemang in Musi Banyuasin, South Sumatra.
The government introduced earlier this year the new gross split policy, to replace the current cost recovery scheme. Under the new, the government will no longer reimburse the expenses of oil and gas contractors.
The Jambi Merang block is operated by JOB Pertamina-Talisman Jambi Merang, which comprises of PT Pertamina Hulu Energi (PHE) Jambi Merang, Talisman Jambi Merang Ltd (owned by Repsol), and Pacific Oil and Gas Group.
On July 12, the three partners signed a MoU on their commitment to maintain production at the block ahead of the expiry of the current contract in 2019. The government has decided to transfer the block to Pertamina after the expiry of the contract.
Jambi Merang block currently has production rate of 155 mmscfd of gas, and condensates of 6,000 bpcd. The JOB Pertamina-Talisman Jambi Merang has two operating fields namely Sungai Kenawang and Pulai Gading in Bayung Lencir District, Musi Banyuasin Regency, South Sumatra.
Pertamina Upstream Director Syamsu Alam said to Petromindo.com that the company is ready to take over the block after the expiry of the current contract, and is also ready to continue partnership with Repsol in the Jambi Merang block.
Editing by Reiner Simanjuntak