But Chevron will unlikely operate the whole oil block."
Pekanbaru, Riau (ANTARA News) - The Upstream Oil and Gas Regulatory Special Task Force (SKK-Migas) said PT Chevron Pacific Indonesia (CPI) was likely to operate again Riau Province`s Siak Block whose contract would expire next November.

"But Chevron will unlikely operate the whole oil block. The oil block will be split into three parts, Block I, II and III. Chevron will operate Block II," Elen Biantoro of the SKK-Migas said here on Tuesday.

Elen said that the other two parts of the oil field, namely Block I and III would be offered to regional government-owned company BUMD and state-owned oil and gas firm PT Pertamina.

However, Elen said, it would all depend on the decision of the Ministry of Energy and Mineral Resources (ESDM).

The SKK-Migas Information Division head said that the Siak Block was divided into three parts by the SKK-Migas because Chevron so far still focused its attention on managing one point so that its oil production had yet to be maximal.

Elen said that the recommendation that the SKK-Migas would issue was not a direct appointment but an offer. "Regarding the BUMD that will get the chance, it will depend on the regional government of Riau Province. We are not yet well-informed of the BUMD. Yet, the decision will be made by the ESDM," Elen said.

She said that the extension of Chevron contract to operate again part of the Siak Block was an effort to optimize national oil production. So far, she said, the Siak Block had an average production of 3,000 barrels.

"What we are trying to avoid the stoppage of the oil production operation when the contract expires in November. This should become a matter of consideration, though it would all be returned to the ESDM to decide," she said.

Up to now, the government has not made any decision with regard to operations of two oil blocks whose contracts will expire on November 27, 2013. The two oil blocks are the Siak Block and the South and Central Sumatra Block.

The two oil blocks had been operated by Chevron and PT Medco E and P Indonesia.

In the meantime, SKK-Migas Head Rudi Ribiandini said last week he hoped the government will soon decide the best winner to operate Riau`s Siak oil block.

"Chances are open for all who have the rights to compete, including regional government-owned firm (BUMD), state-owned oil and gas firm Pertamina and old contract holder Chevron," Rudi Rubiandini said.

He said that the government should decide soon the fate of Siak oil block because the exploitation contract of the oil field with PT Chevron Pacific Indonesia would expire in November 2013.

Rudi said that his office had worked hard to approach the government so that it would take speedy decision for the continuation of Siak oil block's operation.

"We have seen signs for that purpose, but there is no yet decision on who will continue the Siak Block contract," Rudi said.

Riau`s provincial government has recommended that the Energy and Mineral Resources Ministry appoint PT Riau Petroleum in its capacity as a BUMD in Riau to operate the oil field.

Chevron said it was still interested in continuing its contract on the exploitation of Siak oil block. However, the company is so far still waiting for recommendation from SKK-Migas.
(Uu.A014/H-YH)

Editor: Priyambodo RH
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