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Pertamina ties up with new partners in developing Sanga-Sanga Block

JAKARTA ( – State-owned energy company PT Pertamina will tie-up with a new partner, relatively unknown, PT Karunia Utama Perdana and Opicoil Houston Inc., in developing the Sanga-Sanga Block in East Kalimantan.

This was revealed by Director General for Oil and Gas at the energy ministry Djoko Siswanto during a hearing with the House Commission VII recently.

The existing production sharing contractors would no longer take part in the new PSC contract.

Under the new PSC scheme, Pertamina will hold 67.5% participating interest in the block, local government companies (BUMD) 10%, PT Karunia Utama Perdana 13.725 and Opicoil 8.78%.

Pertamina will also tie up with new partner PT GHJ SES Indonesia in developing the SES Block. The previous contractors — CNOOC SES Ltd, Inpex Sumatera, CNOC Sumatera Ltd, Talisman UK Southeast Sumatera Ltd and Risco Energy Pte Ltd will no longer take part in the new PSC contract.

A number of oil and gas blocks will soon expire. Pertamina has been given favorable treatment to become the operator of the expired blocks, either alone, tie-up with existing operators or tie up with new partners.

Sanga-Sanga Block has been producing oil at an average of 16,733.23 barrels of oil equivalent per day (boepd).

VICO Indonesia has been operating the Sanga-Sanga Production Sharing Contract (PSC), which is located in the Kutai Basin of East Kalimantan and covers an area of approximately 1,700 square kilometers, for more than 40 years. It has produced more than 12,6 TCF of gas and 0.4 billion barrels of liquid from the production fields in Badak, Mutiara, Semberah, Nilam, Pamaguan, Lampake and Beras.

The initial PSC was awarded in August 1968 and a 20 year license extension was granted in April 1990 to take effect from August 1998 until 2018.

VICO Indonesia owns 7.5 percent participating interest. The remaining interests are held by its non-operating partners, namely BP (26.25 percent), ENI (26.25 percent), VIC (15.625 percent), Opic Oil, a Houston based subsidiary of Taiwan’s CPC  (20 percent) and Universe Gas and Oil, a Japanese consortium including Japex and the Osaka Gas Group  (4.375 percent). (*)

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