JAKARTA (TheInsiderStories) – State-owned oil producer, PT Pertamina obtain participating interest (PI) of 30 percent through its subsidiary in Corridor Block starting in 2026. Currently the company hold 10 percent.
As eleven other oil and gas termination blocks, Pertamina also ensures that it is ready to become the Block Corridor operator in 2026, or three years after the contract runs on Corridor Block.
Pertamina said in an official statement that the increase in in the PI’ rights was a positive thing. Immediately, the oil and gas producer said will prepare various strategies and steps to become Block Corridor operator in 2026 until the contract is completed in 2043.
In addition, the Corridor Block profit sharing contract will be valid for 20 years, effective from December 20, 2023 using a gross split scheme. In the first 3 years, the operator is Conoco Philips and for the next 17 years Pertamina has the right to manage Corridor Block.
“As a State-Owned Business Entity, Pertamina also supports Regional-Owned Enterprises involvement that will get 10 PIs of PI rights,” he said.
Furthermore, the block located in Banyuasin, South Sumatra is noted to have third largest gas reserves in Indonesia where gas production contributes up to 17 percent of total national gas production.
“We are optimistic about managing Corridor Block, this is very strategic because it will be integrated with Rokan Block managed by Pertamina in 2021 and Dumai Refinery in Riau,” explained Usman.
Is known, the Minister of Energy and Mineral Resources (MEMR) Ignasius Jonan has signed a decree agreeing to extend the cooperation contract in the Corridor Working Area in Musi Banyuasin Regency, South Sumatra on Monday (07/22).
The estimated investment value of implementing the first five-year work commitment is US$250 million and the signature bonus also $250 million.
“With this decision, it is hoped that the transition period in the Corridor Block will run well so that operations and investments can continue on an ongoing basis to maintain the production of Block Corridor,” Pertamina concluded.
Written By Willy Matrona Email@TheInsiderStories.com