Jakarta (ANTARA News) - The government has targeted to sign the gross split production sharing contract (PSC) of Rokan oil block in Riau by the end of January.

Spokesman of the Energy and Mineral Resource Ministry Agung Pribadi confirmed the report here on Wednesday.

Earlier in December 2018, state-run oil company PT Pertamina had paid a signature bonus of US$784 million (some Rp11.3 trillion) and a guarantee of 10 percent of commitment to achieve sustainable performance (KKP), or some $500 million (Rp7.2) trillion.

Energy and Mineral Resource Minister Ignasius Jonan stated that negotiation on the contract would take some two weeks before they can sign it.

"Once we start it, in the next two weeks, we can sign it (the contract)," Jonan noted.

The operation of Rokan Block under Pertamina, starting from Aug 9, 2021, would increase the company`s contribution to national oil production to 60 percent.

In 2018, Pertamina`s contribution to the country`s oil production had reached some 36 percent.

"In 2021, we expect Pertamina`s contribution to increase by 50 percent," he remarked.

Rokan Block is the largest oil block in Indonesia, which was previously operated by PT Chevron Pacific Indonesia. Currently, its production has reached 207 thousand barrel per day, or equal to 26 percent of the national production.

The oil block that covers an area of 6,220 kilometer square has 96 oil fields, of which three of them, namely the Duri, Minas, and Bekasap fields, have recorded the highest oil production volume.

Since its operation in 1971 until Dec 31, 2017, Rokan Block had produced 11.5 billion barrel of oil in total.

The ministry on July 31, 2018, had decided to hand over the oil block`s operation to Pertamina. The decision was purely based on business consideration after evaluating Pertamina`s proposal.

Pertamina will operate Rokan from Aug 8, 2021 to 2041.

Reporting by Afut Syafril Nursyirwan, Sri Haryati

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Editor: Fardah Assegaf
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