JAKARTA (TheInsiderStories) - Ministry of Energy and Mineral Resources given the Block Off Shore North West Java (ONWJ) contract extension given entirely to state-owned energy firm PT Pertamina, said the Director General of Oil and Gas IGN Wiratmaja Puja. ONWJ contract will expired on Jan. 18, 2017 and was extended until the year 2037.
Pertamina’s participation in the ONWJ began when Pertamina to buy 46 percent stake in BP West Java Ltd for US$280 million. Since then, its unit PT Pertamina Hulu Energi ONWJ continue to increase the number of shares in the block, through partnerships participate fickle.
Accordin to Wiratmaja, the Minister Ignatius Jonan has sent a letter to the Special Unit of Upstream Oil and Gas (SKK Migas) related to the government’s decision. The government is currently waiting for the determination of SKK Migas.
“The letter was given to SKK Migas. Hopefully soon, we wait SKK Migas, yes,” Wiratmaja told Kontan.
The government’s decision to ONWJ similar to the Mahakam block. With so PT Energi Mega Persada Tbk (IDX: ENRG), which became partners Pertamina in ONWJ, if they want to participate to manage the block, should be through the mechanism of business with Pertamina.
Meanwhile another Pertamina partners in ONWJ block, namely Kuwait Foreign Petroleum Exploration Company (Kufpec) Indonesia had already decided not to extend the contract at ONWJ.
Meanwhile, the government has also been decided that the Government of West Java province to get 10 percent stake in ONWJ and Gas Upstream has appointed PT Jabar in order to communicate with Pertamina.
Currently, Pertamina is targeting production this year ONWJ sebesr 37,300 barrels per day and 163 million cubic feet of gas per day (MMSCFD). Until May 2016, Pertamina Hulu Energi ONWJ posted record production of 37 112 barrels of oil and 172.5 MMSCFD gas.