JAKARTA (TheInsiderStories)–After winning the rights to expiring contract of Rokan block, Indonesia’s state-owned oil and gas company PT Pertamina (Persero) is now eyeing Corridor Block in South Sumatra after its contract expires in 2023.
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 raisef 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.