Siak and Kampar blocks attract many firms
Monday, November 25 2013 - 11:25 AM WIB
Many firms have expressed interest to take over the Siak and Kampar blocks in Sumatra whose the contracts are about to expire. They have to compete with state owned oil and gas firm PT Pertamina (Pesero) who has officially sent a letter to Minister of Energy and Mineral Resources Jero Wacik on its intention to take over the whole participating interest in the block.
The Siak block in Riau is now operated by PT Chevron Pacific Indonesia, while the Kampar block in central Sumatra is now operated by PT Medco Energi Internasional.
?There are dozens of firms who are interested in the blocks, including Medco for the Kampar block. It wants to redevelop the block. But, the minister has yet to make any decision,? a source at the Ministry of Energy and Mineral Resources told Petromindo.com.
Contracts on both blocks expire on Nov. 27, 2013.
Pertamina?s Director of Risk Management and Investment Afdhal Bahaudin and Upstream Director Muhammad Husein confirmed that Pertamina is interested in both blocks and, in a letter sent to Jero, expressed intention to take over the whole participating interest in both blocks. They however said there isn?t yet any response from the minister to the letter.
The Kampar block is part of South and Central Sumatra PSC. The PSC consists of two sections or blocks, namely South Sumatra Extension and Central Sumatra Kampar. The latter is better known as Kampar block.
Medco has reportedly obtained a contract extension for the South Sumatra Extension block for another 20 years starting Nov. 27, 2013 but has been told to relinquish the Kampar block. It remains unclear why the PSC has been divided into two contracts.
Editing by Johannes Simbolon