This Month The Riau Provincial Government Will Receive A Share Of The Results From The Management Of The Rokan Block

JAKARTA - The Riau Provincial Government will receive a profit-sharing fund of 10 percent from the management of the Rokan Block this month.

Previously, PT Pertamina Hulu Rokan (PHR) emphasized its commitment regarding the transfer of the Participation Interest (PI) of 10 percent of the Rokan WK which will become income for the regional treasury of Riau Province.

For information, the commitment of PI 10 percent from PHR to Riau Province is regulated in the Regulation of the Minister of Energy and Mineral Resources (ESDM) Number 37 of 2016 concerning Provisions for 10 percent Participation Interest Offering (tens of Percent) in the Oil and Gas Working Area. The regulation stipulates that 10 percent PI must be offered by KKS Contractors from a WK to Regional Owned Enterprises (BUMD).

The BUMD was ratified through Regional Regulation (Perda) and in the form of Perusda (100 percent Regional Government) or Limited Company (at least 99 percent of Regional Government and the rest affiliated with the Regional Government). BUMD is only the manager of PI 10 percent and is not allowed to carry out other business activities.

The BUMD can appoint a Regional Company Company (PPD), in the event that BUMD has managed a 10 percent PI in a WK or has attempted another WK or carried out business activities other than upstream oil and natural gas business activities.

PHR Corporate Secretary WK Rokan Rudi Ariffianto said the Riau Provincial Government had formed BUMDs, namely PT Riau Petroleum (RP) and RP, which further appointed PPD, namely PT Riau Petroleum Rokan (RPR) which will manage PI 10 percent of Rokan WK. The transfer to the production of PI 10 percent will be carried out in stages.

"The payment of the right to share this result is in accordance with the agreement that has been mutually agreed upon, and it is planned that the initial disbursement will be carried out in December this year," Rudi said in his statement to the media, Tuesday, December 5.

He further added that the transfer of 10 percent PI proceeds is expected to provide benefits to the regions, including providing income for BUMDs that will increase regional income. Not only that, BUMD's involvement allows capacity building and competence for BUMD and PPD in the management of WK Migas.

"This 10 percent PI will also become new income for both provinces and districts in Riau," he said.

In the agreement to transfer PI 10 percent, it was emphasized that all oil and gas operations at WK Rokan were still fully implemented by PHR.

As the operator of WK Rokan, PHR will first bear the financing of the RPR obligations which will take effect on the transfer date and the RPR is then required to return to PHR in the same amount, which is taken or deducted from the production sharing which is part of the RPR.

This agreement also regulates the obligation of the RPR to support the creation of a conducive social atmosphere and condition for the implementation of Oil and Gas operations at the Rokan WK. If requested by the operator, the RPR is obliged to assist various processes, including the acceleration process in the issuance or extension of licensing to the local government and the central government if needed as long as this acceleration does not violate the provisions of the legislation.

During the enactment of the Rokan WK share contract, the RPR is not allowed to sell, transfer, transfer or release all or part of the 10 percent PI to any party or take corporate steps that cause changes in share ownership in the RPR.