"If the stake is still shared with a foreign partner, it will be the same as nothing is changed."
Pekanbaru, Riau (ANTARA News) - Pertamina as a state-owned oil company must take over the Siak Block oil field from Chevron whose contract is to end later this year, oil observer Kurtubi said.

"Pertamina had better take over the Siak Block oil field than investing overseas. The oil field is already in production which could be continued," Kurtubi said here on Sunday.

The 22 year oil production sharing contract with PT Chevron Pacific Indonesia over the Siak Block will expire on November 27, 2013.

According to Kurtubi, based on Law 22 / 2001 on oil and gas, Siak Block oil field when the term of contract is already over should be returned to the government through the Upstream Oil and Gas Regulatory Task Force (SKK-Migas).

So far, based on Antara`s records, only Chevron and regional government-owned company (BUMD) have submitted a proposal to continue the exploitation of the oil block.

"A state firm (Pertamina) and the BUMD are the ideal parties to run the oil field so that all production will return to the state, not be shared with another country," Kurtubi said.

He said that it was quite questionable if Pertamina was not interested in operating it because its investment risks were quite low as it has been in production.

Under the exploitation of Chevron, the Siak Block oil field produces 1,600 - 2,000 barrels of oil per day (bpd).

"Pertamaina must be prepared to manage it because the oil block will return to the state while Pertamina is a state company. If Pertamina refuses to take it over, it is something that raises suspicion," Kurtubi said.

BUMD Riau Petroleum said it had already had commitment with PT Ekamaro Sakti to form a consortium for the management of the Siak oil block with a share composition of 51 percent for the BUMD and 49 percent for its partner.

Riau Petroleum also planned to obtain financial assistance from the United Overseas Bank Limited (UOB) of Singapore.

"If the stake is still shared with a foreign partner, it will be the same as nothing is changed," Kurtubi said.
(Uu.A014)

Editor: Priyambodo RH
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