W. Java hopes transfer of 10% PI in ONWJ block in November

Petromindo|Khalsa

The West Java provincial administration expects the transfer of a 10 percent participating interest (PI) in the Offshore North West Java (ONWJ) block could be concluded in November of this year, Bisnis Indonesia reported on Wednesday.

The paper quoted Begin Troys, President Director of West Java provincial government-owned company PT Migas Hulu Jabar, as saying that state-owned oil and gas firm PT Pertamina is currently completing due diligence process for the transfer of the PI.

?Our hope is that by November we?ll officially have PI in ONWJ block,? he said.

The government on January 18 of this year renewed the contract over the ONWJ block, assigning 100 percent of the block to PT Pertamina Hulu Energi, a subsidiary of Pertamina. But according to Minister of Energy and Mineral Resources Regulation No 3/2016, contractors signing into new oil and gas block contracts are required to allocate 10 percent PI to local governments of regions where their projects are located.

PT Migas Hulu Jabar plans to set up a consortium with PT Jakarta Propertindo, a company owned by the Jakarta provincial administration, to manage the 10 percent PI in ONWJ block. Jakarta Propertindo will have a 20.29 percent in the consortium, while Migas Hulu Jabar to hold 79.91 percent, which will be distributed among West Java provincial administration, Indramayu regency administration, Subang regency administration, Karawang regency administration, and Bekasi regency administration. (*)