JAKARTA (rambuenergy.com) – The Indonesian Energy and Mineral Resources Minister Sudirman Siad on Tuesday (Dec. 12) officially signed the contract status of four production sharing contracts (PSCs), namely Kampar, Pase, Gebang and Offshore North West Java (ONWJ) blocks.
“Today, the Minister has signed working area contracts. The first was Kampar block as the block’s contract will expire on December 31 this year,” the head of control unit at the energy ministry Widhyawan Prawiraatmadja was quoted by detik.com as saying.
The Kampar block will be handed over to Pertamina. However, the existing PSC holder Medco is given one year transition until December 31, 2015.
The minister officially signed the four PSC contracts, after late last month, the energy ministry announced the four oil and gas blocks’ contract status.
Pase Block, operated by Triangle Pase, is extended, with a condition that the operator needs to involve a local government-owned company to be assigned by the Aceh government.
The contract of Gebang block in North Sumatera which is operated by PT Energi Mega Persada is extended. The contract of ONWJ block, which is operated by Pertamina Hulu Energi (PHE) is also extended. The ONWJ’s existing contract will expire on Jan. 19, 2017.
The government is expected to decide the status of more PSC contracts in the more oil and gas blocks in the next few months, in particular oil and gas blocks whose contract will expire in the next few years. The decision on contract status is important as it will give clarity to the existing operators to make investment plans should the contracts were extended or ceased. These include the high profile Mahakam Block, which is operated by Total E&P Indonesie. (*)