JAKARTA (RambuEnergy.com) – The Energy and Mineral Resources Ministry said the new production sharing contract (PSC) for the development of the ageing Rokan Block in Riau province will be signed in late January.
The energy ministry in August last year decided not to extend the contract of Chevron Pacific Indonesia (CPI) to operate the block. Instead, it awarded the new contract to the state-owned energy company PT Pertamina.
CPI has developed and operated the block since 1971. Rokan block has 96 fields, including three major oil producing blocks, namely Duri, Minas and Bekasap. In the period of 1971 and Dec. 31, 2017, the block has produced 11.5 billion barrels of oil, and has become the major contributor to the national oil production before Cepu Block reached peak production.
Under the new PSC contract, Pertamina will begin operating the Rokan block from Aug. 9, 2021. Once Rokan block is under Pertamina’s hand, Pertamina is projected to contribute around 60% of national oil production.
The hand-over of the Rokan block to Pertamina was the second major block that has been awarded to Pertamina, after Mahakam Block.
In December last year, Pertamina has paid a signature bonus of US$784 million or Rp11.3 trillion tot he government and investment commitment of US$500 million. At present, Rokan block produced 207,000 barrels of oil per day or 26% of the national oil production.
The newly appointed Head of the Special Task Force for Upstream Oil and Gas Dwi Soetjipto said Pertamina is required to begin investing in Rokan Block during the transition period. The meeting over the investment plan will be held this week. (*)
Written by Staff writer
Edited by Roffie Kurniawan (email@example.com)