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Pertamina consolidates control over Siak block, Indonesia

04th June 2014

PT Pertamina, through its subsidiary PT Pertamina Hulu Energi (PHE), officially began operating the Siak block following the expiration of the contract between the Indonesian government and Chevron Siak Indonesia

Pertamina consolidates control over Siak block, Indonesia
With the entrance of the Siak block, PHE is expected to boost production to 71,000 bpd

The change of the operator of the Siak block was marked by the signing of a production sharing contract (PSC) between PHE Siak, represented by PHE Siak president director Bambang Kardono, and SKK Migas, represented by SKK Migas chief Johannes Widjonarko, and was approved by energy and mineral resources minister Jero Wacik.

“This is a very important moment. After being discussed for six months, finally, the Siak block, located in Riau Province, has been officially taken over by PHE Siak,” said Husen on Monday. “The production of the block currently reaches 1,800 barrels per day (bpd). By owning 100 per cent share in the block, which comprises Lindai field, Batang field and South Menggala field, we hope that the block can contribute in our effort to increase Pertamina and PHE’s production

“After the handover process, we will start working to understand the characteristic of the fields and then focus on increasing production.”

Currently, PHE oil production as operator reaches 116,000 bpd (with PHE’s portion of 68,000 bpd). With the entrance of the Siak block, PHE is expected to boost production to 71,000 bpd.

Husen expressed his appreciation to Chevron for maintaining the operation and production in the six month transition period since 27 November 2013 to 27 May 2014.

“Within that period, we have also built good cooperation between PHE and Chevron so that the Siak block handover process can be done smoothly.”

PHE Siak intend to increase production in the block, targeting first-year oil production levels of 2,000 bpd.

“We’re also optimistic that we’re able to increase production and committed to continue looking for new resources to support efforts to increase production,” said Tenny Wibowo, PHE president director.

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