"We`ve conveyed the commitment to the government two years ago, before the expiry of the contract on May 6, 2011. But there has been no decision on whom the management of the field will be given to."
Jakarta (ANTARA News) -State oil company PT Pertamina wished to manage West Madura block two years ago, repudiating the government statement that it has not yet expressed a commitment to do so.

Pertamina`s spokesperson M. Harun said here on Monday that it is the company which has not given a reply on its commitment to manage the oilfield as the earlier contract expired on May 6, 2011.

"We`ve conveyed the commitment to the government two years ago, before the expiry of the contract on May 6, 2011. But there has been no decision on whom the management of the field will be given to," said Harun.

Harun said the unclear situation on the continuation of the contract has led to decreasing production from 19,000 barrels per day to 14,000 barrels per day.

Pertamina has offered the government a 100 percent right to manage the field with a production target of 30,000 barrels per day. To this end, Pertamina has prepared the required human resources and allocated an investment of 28.4 trillions rupiahs.

Harun added that the development strategy for West Madura block would be similar to that applied to Offshore North West Java block in the north of Java that Pertamina had taken over. Pertamina has succeeded in boosting production from 21,000 barrels per day to 39,000 barrels per day.

For 2011 Pertamina, he said, allocated 37.1 trillion rupiahs, 76.4 percent of which will be spent on the upstream sectors and the remaining 23.6 percent amounting to 8.7 trillion rupiahs on the downstream sectors.

Energy and Mineral Resources Minister, Darwin Saleh, said on Friday last week that the government will always prioritize Pertamina`s role in managing national oil and gas, but will also question on its commitment to do so.

"The decision on the continuity of managing the West Madura block is about to be finalized. But I want to know Pertamina`s commitment first on its participation," Minister Saleh said.

He added that the government in support of Pertamina`s intention of taking up to 100 percent of the concessionary rights for West Madura block. "However, intention wouldn`t be enough, there`s should also be an ability," said Minister Saleh.
(KR-VFT/H-NG/F001)

Editor: Priyambodo RH
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