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Indonesia govt wants smooth transition in Rokan Block operatorship

JAKARTA ( – The Indonesian Energy and Mineral Resources Ministry is determined to implement a smooth transition in the changing of the operator of Rokan Block, a giant and ageing oil block in Riau so that there will be no negative impact in the changing of the operator.

Deputy Minister for Energy and Mineral Resources Arcandra Tahar said Pertamina plan to invest in the block’s development once the new production sharing contract (PSC), which will be based on gross split scheme, is signed.

The Indonesian government on July 31, 2018, picked Pertamina, Indonesia’s state-owned diversified energy company, as the new operator of the block, starting from Aug. 9, 2021.

Once the block is under the hands of Pertamina, the state-owned energy company is estimated to contribute 60% of the national oil production.

Arcandra said Pertamina will soon invest in the block during the transition period. Pertamina, he said, has also identified wells that need to be drilled.

The Communication Bureau Head of the energy ministry Agung Pribadi said since December last year, the Special Task Force for Upstream Oil and Gas (SKK Migas) has undertaken a number of steps to assure a smooth transition.

Both Pertamina and Chevron Pacific Indonesia have also engaged in discussions over the hand-over as well as other technical, legal and commercial aspects in the development of the Rokan Block.

To assure a smooth transition, both parties have set up a working team.

Rokan Block currently produced around 207,000 barrels of oil per day or equals to 26% of the national oil production. The block encompasses 6,220 sqm, comprising of 96 fields. Among major and ageing fields are Duri, Minas and Bekasap.

In the period between 1981 and Dec. 31, 2017, Rokan Block has produced 11.5 billion barrels of oil.

Rokan Block is the second major oil block whose contract was not extended to the existing operator, after Mahakam Block, the largest gas producing block in the country. Mahakam has also been handed over to Pertamina. (*)

Written by Staff Writer, edited by Roffie Kurniawan (Email:

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