SKK Migas expects CPI to quickly start production at two Rokan block fields

By Bernard Loebs

Petromindo|Dasir

Upstream authority SKK Migas has urged Chevron Pacific Indonesia (CPI) to resume development of Kelok and Kokoh fields at the Rokan block, in Riau Province.

Djoko Siswanto, Deputy for Procurement Control at SKK Migas, said on Tuesday that CPI five years ago began drilling activities at the two fields but where then suspended due to claim by the Ministry of Forestry that the two assets were located in protected forest areas despite the company had already secured environmental permit.

But, Djoko said, as the issue has now been settled, CPI should resume activities toward production phase of the two fields.

He acknowledged that CPI is currently developing oil pipelines in the two fields. If the fields could be on-stream in October of this year, it would be able to provide additional oil output of 3,500 bopd for the Rokan block through four producing wells.

CPI?s current contract over the Rokan block, however, is set to expire in 2021. Djoko said in June that the government is likely to extend the contract of CPI, which has the right to seek for an extension. The government, he said, would not transfer the Rokan block to state-owned oil and gas firm PT Pertamina when the current contract expires, but a gross split scheme would be applied in the new contract.

He said that although Rokan is an aging block, production remains high at 250,000 bopd.

Editing by Reiner Simanjuntak