Pressure To Accelerate The Transition To Transfer Management Of The Rokan Block To Pertamina

JAKARTA - The Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, has urged the acceleration of the transition process for the transfer of management of the Rokan Block from Chevron Pacific Indonesia to PT Pertamina (Persero). He hopes that this process can be completed soon next year.

"That way, it will accelerate the implementation of the oil and gas drilling process in the block located in Riau Province," said Arifin, quoted from the Secretariat's website, Thursday, December 26.

According to the Minister of Energy and Mineral Resources, so far the process of transfer of management between the two parties is continuing. "We've asked Pertamina to be proactive then Chevron can open the door, that's it. Every week Chevron has reported it. then we met Pertamina, "he said.

Acceleration of management transfer, continued Arifin, was carried out to maintain the level of production of the Rokan Block when it matures for management in 2021. For this reason, ESDM Minister Arifin Tasrif asked Pertamina to immediately prepare funds for drilling investment.

"Pertamina has already prepared, because this Pertamina must immediately carry out 20 drilling points to be able to maintain it, out of 72 targets. Yes, at least 20 of them can be done, ”said Arifin.

Nevertheless, Arifin acknowledged that there were still several administrative issues and other important issues between the two parties which were Business to Business (B to B).

"Indeed, there are several matters related to regulations and administrative contracts that must be completed. But next year it must be finished, ”said Arifin.

Early 2019, the production of the Rokan Block reached 207,000 barrels per day, equivalent to 26 percent of national production. The block, which has an area of 6,220 kilometers, has 96 fields, of which three fields have the potential to produce excellent oil, namely Duri, Minas and Bekasap. It is recorded that since its operation in 1971 to December 31, 2017, the total production in the Rokan Block has reached 11.5 billion barrels of oil since the beginning of its operation.

As is known, the Government through the Ministry of Energy and Mineral Resources decided to entrust the management of the Rokan Block to Pertamina on July 31 2018. This decision was taken purely on the basis of business and economic considerations after evaluating Pertamina's proposal submission which was considered better in managing the block.

The Rokan block itself is the second largest oil block in Indonesia. This 6,220 kilometer block has 96 fields with three fields having excellent oil potential, namely Duri, Minas and Bekasap.

For next year, SKK Migas targets production in the Rokan Block to reach 161 thousand barre oil per day (bopd) or a decrease compared to this year's target of 190 thousand bopd. This is because Chevron will no longer invest in any activities in the Rokan Block next year.