ConocoPhillips is the world’s largest independent exploration and production (E&P) company based on proved reserves and production of liquids and natural gas - Photo by ConocoPhilips

JAKARTA (TheInsiderStories) – Indonesia’ state-owned energy firm PT Pertamina, the existing operators ConocoPhilips, and other investor had submitted a special proposal for the Corridor Block, whose contract period will expire in 2023, said one government official on Thursday (20/09).

According to the Director General of Oil and Gas, Ministry of Energy and Mineral Resources (MEMR) Djoko Siswanto ConocoPhilips, an American multinational energy corporation, plans to cooperate with Spanish’ Repsol SA to operate the block, which has oil and gas reserves of 6.6 thousand barrels and 949 million metric standard cubic feet per day (MMSCFD).

Unfortunately, Pertamina said Djoko did not cooperate with other companies to operate this block.

“Conoco plans to submit a proposal next Wednesday. If Pertamina has already entered, the weight of the 20 kilos is a proposal,” Djoko said at the ESDM Ministry on Wednesday (9/19).

Djoko explained that if the proposals from both companies had been submitted to his side, then he and the team would evaluate and decide on the management rights to the proposal owner with the best offer.

“As usual, the government will consider which proposals are more attractive in terms of their offerings. What is certain is that the gross split scheme, if you don’t want it, cannot block it,” Djoko said.

Previously, it was known that PT Pertamina (Persero) had officially submitted a special proposal to manage the Corridor block which would expire on December 19, 2023. The proposal was submitted last week to the Ministry of Energy and Mineral Resources.

EMR Deputy Minister Arcandra Tahar confirmed that previously PT Pertamina (Persero) had also requested open data to the ministry for this 2,360 KM block. However, since the deadline is still long, the government is still discussing it first.

Meanwhile, currently the Corridor block is still managed by ConocoPhillips. Oil production up to April 2018 was recorded at 6,666.68 BOPD, and gas production was 949.65 MMSCFD.

The Ministry of Energy and Mineral Resources (MEMR)’s Director General for Oil and Gas Djoko Siswanto said Pertamina had asked a permit to open the Corridor block’s data that indicated the company is interested in the block.

Corridor Block is operated by the US company ConocoPhillips since 2002 after acquiring Gulf Resources with a participating interest of 54 percent. Repsol Energy and Pertamina own 36 percent and 10 percent of participating interest, respectively.

Furthermore, the MEMR’s Director of Oil and Gas Upstream Business Development Ediar Usman added the government has given a permit for Pertamina to open Corridor block’s data. “We received the permit request and has given a permission,” he said, as quoted by Kontan on Sunday (5/8).

Corridor block which has an area of 872 square miles is the third largest gas block in Indonesia after Tangguh Block and Mahakam Block. Grissik Field in Corridor Block recorded gas production of 841 MMscfd in the first semester this year, higher than 2018 state budget target of 810 MMscfd.

However, the Upstream Oil and Gas Regulatory Special Task Force projected the Corridor’s gas production will be lower at 798 MMSCFD during 2018. Corridor block performance is supported by the operation of the Sumpal compression production facility in May 2017 that raised additional gas production of 310 MMSCFD.

In August 2017, EMR Minister Ignasius Jonan raised Grissik Field’s gas price sold by ConocoPhillips to PT Perusahaan Gas Negara (IDX: PGAS) to US$3.5 per MMBtu from US$2.6 MMbtu for a volume of 22.73 billion british thermal unit per day (BBTUD).

The block’s contract starts on November 17, 1983 and will expire on December 20, 2023. There are several fields operating in this block, namely Suban, Sumpal, Dayung, Gelam, Letang, Rawa, Puyuh, Supat, RebonJaro, Keban, Suban Baru , and Dangku.

Written by Staff Editor, Email: theinsiderstories@gmail.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here