Chevron, Pertamina Compete for Rokan Block

Friday, 19 May 2017 , 09:00:00 WIB - Economy

The Rokan Block, which is being competed as PT Chevron Pacific Indonesiaâs Production Sharing Contract (PSC) will expire on 8 September 2021.

JAKARTA, GRES.NEWS – The Production Sharing Contract (PSC) of PT Chevron Pacific Indonesia at the Rokan Block, Riau, will expire on 8 September 2021.

It seems Chevron does not intend to leave yet. Vice Minister of Energy and Mineral Resources, Arcandra Tahar, said his ministry has received a proposal from the company, who intends to continue managing the block.

However, they are not the only contractor eyeing the lucrative block.

PT Pertamina is also interested and even the Provincial Government of Riau has declared its interest, trough a company it owns.

According to Arcandra, the ministry will select prudently. Principally, he says, the most important thing is that the government must obtain maximal benefits for sake of the people’s welfare.

"We are conducting evaluations to determine the best to manage the Rokan Block. We are currently deciding between a regional-owned company, Pertamina and Chevron. This block is significant. We must make decide prudently. We have to consider all aspects," Arcandra said, Wednesday (17/5).

Chevron has been managing the block since 1971, with the area expanding 6,264 square kilometers.

According to SKK Migas, lifting t the Rokan Block reaches 256.400 barrels per day (bph), which is equivalent to 31.3 percent of the national lifting that amounted to 817,900 bph in the first semester of 2016. Chevron targets oil lifting at the block to reach 228,910 bph this year.

PERTAMINA VS CHEVRON – On 8 March 2017 President of Explorations and Production, Chevron Asia-Pacific, Steve W. Green met Vice President Jusuf Kalla to lobby the company’s contract extension.

Chevron Asia-Pacific Indonesia Senior Vice President Policy, Government and Public Affairs, Yanto Sianipar, said the meeting aims at showing to the Indonesian government that Chevron, who has been operating in the country for 90 years, is interested to continue the cooperation with the government.

"Chevron wants to continue cooperating with the government to produce reliable, safe and efficient energy for the interest of the economic growth in Indonesia," he said.

PT Pertamina has also declared its interest. Director of Upstream Business, Syamsu Alam, confirmed that the company wants to take over the Rokan Block. "(The Rokan Block) is in our list," he said.

PT Pertamina, he says, wants to convince the government that oil and gas production at the block will not drop.

"By being able to maintain production rate, we hope the government can trust Pertamina to manage the block," Syamsu said. (dtc)