JAKARTA (RambuEnergy.com) – The Indonesian Ministry of Energy and Mineral Resources (MEMR) has decided to extend the contracts of the existing operators to operate three oil and gas blocks – Tarakan, Coastal Plains and Pekanbaru (CPP) and Tungkal.
Deputy energy minister Arcandra Tahar said late Monday that the three blocks contracts will expire in 2022. The energy ministry, he said, has decided to extend the operators’ right for 20 years based on production sharing contract (PSC) gross split scheme.
Currently, Tarakan Working Area is operated by PT Medco E&P Tarakan (100%); CPP by PT Bumi Siak Pusako (100%) and Tungkal by Montd’or Oil Tungkal (70% stake) and Fuel-X Tungkal Ltd 30%.
He said in the PSC contract, 10% of participating interest of those blocks will be granted to the local governments’ owned companies.
A number of oil and gas blocks operatorship contracts are scheduled to expire in the next few years. The operatorship right of some major oil and gas blocks, such as Rokan in Riau Province and Mahakam block in East Kalimantan, have been granted to Pertamina as the new operator.