The government will increase Pertamina`s contribution to the nation`s oil and gas production, which is a roadmap to build the company.
"The government has provided Pertamina with 12 oil and gas termination blocks, including the blocks of Mahakam, ONWJ, Tengah, Attaka, East Kalimantan, North Sumatra Offshore, Sanga-sanga, Southeast Sumatra, Tuban, and Ogan Komering. The Jambi Merang and Raja-Pendopo blocks were the latest ones given to Pertamina in May 2018," ESDM Deputy Minister Arcandra stated on Friday.
According to data from Pertamina`s report, from 10 oil and gas termination blocks apart from Mahakam and ONWJ, Pertamina`s additional revenue is estimated at US$24 billion for the next 20 years.
"This can certainly compensate for Pertamina`s financial issues that are being discussed lately," Head of Communications and Public Information Service Bureau of the Ministry of ESDM Agung Pribadi stated.
In a bid to also reduce Pertamina`s financial burden, the government has proposed to increase the diesel subsidy.
"At a working meeting with Commission VII of the House of Representatives, the ESDM along with the House of Representatives has agreed to increase the price of subsidized diesel fuel this year to Rp2,000 per liter, while in 2019, it will be Rp2,500 per liter," Agung revealed.
"The government must pay close attention to Pertamina, and it is impossible for the government to ignore it. The provision of 12 oil and gas termination blocks, increasing Pertamina`s oil and gas production contribution, and increasing solar subsidy are some concrete efforts to improve Pertamina`s performance. It is encouraging Pertamina to become a world-class oil and gas company," Agung noted.
One of the oil and gas termination blocks granted to Pertamina is the Jambi Merang block. In the 2019 termination block, Pertamina has given an investment commitment worth $239 million, or Rp3.2 trillion. It is the biggest investment commitment so far. In the block, Pertamina also provides a signature bonus of $17.3 million to the government, or approximately Rp232 billion.
As is known, from January 2017 to July 2018, some 25 oil and gas blocks are using the gross split scheme contract. The contract that replaces the cost recovery scheme has provided a total investment commitment of some $1.28 billion and a signature bonus of $74.8 million. The Jambi Merang Block, managed by Pertamina, is the largest contributor.
Reporting by Afut Syafril
Editing by Andi Abdussalam
Reporter: Antara
Editor: Otniel Tamindael
Copyright © ANTARA 2018
