The Government Asks Chevron To Give Certainty To The IDD Block In July

Minister of Energy and Mineral Resources (ESDM), Arifin Tasrih, urged PT Chevron Pacific Indonesia (CPI) (photo: twitter @KemmenterianESDM)

JAKARTA - The Minister of Energy and Mineral Resources (ESDM) urged PT Chevron Pacific Indonesia (CPI) to immediately provide a pass related to the transfer of management of the Indonesia Deepwater Development (IDD) block in July.

"We hope that IDD must have certainty this June," Arifin told the media quoted on Saturday, June 24.

This is because the certainty of the share sale and purchase agreement (SPA) related to Chevron's management rights in the deep-sea oil and gas (IDD) project is tough and has not been completed. In fact, continued Arifin, the certainty of the share sale and purchase agreement (SPA) related to Chevron's management rights in the deep-sea oil and gas project or Indonesia Deepwater Development (IDD).

For this reason, Arifin emphasized that if Chevron has not provided certainty until next July, his party will take firm steps, one of which is by termination of the contract.

"(The contract termination) That is one of our targets this July so that there is certainty," said Arifin.

However, Arifin was reluctant to mention who Chevron's replacement was in the block located in Kutai Basin, off the coast of East Kalimantan. "Anyone who becomes, yes, basically in July," said Arifin.

Previously, the United States oil and gas company Chevron chose to leave the IDD project which is a National Strategic Project (PSN).

The investor left Indonesia due to the lack of investment in the upstream oil and gas sector.

Just so you know, the IDD project is one of four national strategic projects with a potential production of 844 million standard cubic feet per day (mmscfd) for natural gas and 27,000 barrels of oil per day (bopd).