Pertamina interested to develop East Kalimantan PSC as Chevron opts not to extend contract

JAKARTA (rambuenergy.com) – State energy company PT Pertamina said late Tueday (Jan. 19) that it is interested to develop the East Kalimantan Block post 2018 after the existing operator Chevron Indonesia Company decided not to extend its contract.

“Yes, we are interested. We have just submitted our proposal to the Director General for Oil and Gas,” Pertamina President Director Dwi Soetjipto said at the State Enterprise Ministry late Tuesday (Jan. 19).

Chevron Indonesia Company has decided not to extend its contract to develop East Kalimantan Block which will expire on Oct. 24, 2018. As a result, the company will hand over the block to the Indonesian government.

The decision came as world oil prices plunged to around $30 per barrels, forcing many oil and gas companies around the world to halt their projects and lay off workers. With

‎”Chevron will not propose to extend the East Kalimantan production-sharing contract,” Chevron IndoAsia Business Unit managing director Chuck Taylor said in a statement early Tuesday.

Taylor said in East Kalimantan PSC has been supplying gas to the Bontang and Balikpapan LNG plants.

He however said the decision will not affect its commitment to continue to investment in Indonesia as well as its strategic project developments such as the Indonesia Deepwater Development (IDD). “We have been proud for our strong partnership with the society and the government of Indonesia and will continue to support Indonesia in developing its resources safely, efficiently and in reliable way,” he said. (*)

 

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