Gov’t Assigns Pertamina to Operate Indonesia’s Most Productive Oil and Gas Block

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 1 Agustus 2018
Category: News
Read: 2.471 Views

CompetitiveThe Indonesian Government through Ministry of Energy and Mineral Resources has decided to assign state-owned oil and gas company PT Pertamina to operate the Rokan Block, Indonesia’s most productive oil block, located in Riau province.

“The decision was reached purely based on business and economical consideration after evaluating PT Pertamina’s proposal, considered to be better in operating the block,” said Head of Communication, Public Service Information, and Cooperation Bureau of Ministry of Energy and Mineral Resources Agung Pribadi in his press release on Tuesday (31/7).

Agung added said that the decision was made also based on the signature bonus offered by Pertamina worth USD784 million and the definite commitment value worth $US500 million in carrying out oil and gas exploitation. He added that the big amount of the signature bonus offered also proves that Pertamina’s financial condition is still good and the appointment will increase the company’s contribution for national oil and gas production.

“So far, the percentage of Pertamina’s contribution in the national oil and gas production has increased from 23% to 36% this year and 39% in 2019 when Pertamina begins actively operating termination oil and gas blocks,” Agung said.

In the meantime, Deputy Energy and Mineral Resources Arcandra Tahar said that the added value of this decision would put Pertamina on part with world top oil companies that can dominate 60% of the national oil and gas production in 2021.

The Rokan block is an oil and gas block with a strategic value with the production expected to make up 26% of the total national production. The block, which covers an area of 6,220 kilometers, has 96 fields, three of which Duri, Minas and Bekasap – have very good oil potentials. Since its first operation in 1971 until 31 December 2017, the total production at the block is recorded to reach 11.5 billion barrels of oil.

“Through this decision, the Government also supports the financial capacity of Pertamina, assigned as the Government’s representative in carrying out public service function in providing energy at price affordable for the people all over Indonesia, such as the One-Price Fuel program, “ Agung said. (Biro Komunikasi, Layanan Informasi Publik, dan Kerja Sama Kementerian ESDM/EN/ES) (/EP/Naster)

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