Riau Petroleum Manager Of The Rokan WK Participation Offer

JAKARTA - The Offering Process for Interest Participation (PI) at the Rokan WK to BUMD in accordance with the provisions of the regulations entering the new round.

The Governor of Riau appointed PT Riau Petroleum as the BUMD recipient of the PI bid and PT Riau Petroleum Rokan (RPR) as the Regional Company (PPD) appointed to manage PI in the Rokan WK.

For this reason, PHR and RPR signed a Conditionality Agreement (CA) so that the RPR will start conducting due diligence through the opening of data access (Data Room).

The signing of CA was carried out by Ferry Andriadi as the President Director of RPR and Feri Sri Wibowo as the Executive Vice President of Upstream Business PHR, witnessed by the Governor of Riau, Syamsuar, represented by the Deputy Governor of Riau, Edy Natar Nasution, the Directorate General of MIGAS represented by the Migas Inspector, Asep Herman, the Head of the Riau Province ESDM Service represented by the Secretary of the Service, Ade Yudistira, the Head of SKK Migas Sumbagut Representative represented by the Head of the Public Relations Department of SKKK Migas Sumbagut, Yanin Kholison and the Director of PT Riau Petroleum, Husnul Kausarian.

In the flow of the PI bidding process as regulated in PERMEN ESDM 37/2016, after conducting due diligence and data access, the RPR will have 180 days to study and submit a statement letter to forward or not continue the PI offering interest.

Syamsuar in his remarks delivered by the Deputy Governor, Edy Natar Nasution expressed his appreciation to ESDM and SKK Migas for providing an opportunity for Riau to bid PI.

"BUMD's involvement through PI is not only to provide income for Riau, but also to provide space for us to continue learning," said Edy in an official statement, Friday, December 2.

Riau Petroleum Director, Husnul Kausarian, believes that the Rokan Block will be the prima donna of regional revenue sources because of its large production.

"We are targeted to immediately provide dividends from the Rokan block for the welfare of the Riau people. Therefore, we hope that the PI process can run smoothly," said Husnul.

Meanwhile, the Directorate General of Oil and Gas, Asep Herman, said that his party was grateful that PHR had obtained permission from the BKPM and ESDM to open the data. Thus, the PI process can immediately proceed to the next stage according to regulations.

Head of SKK Migas Representative for Sumbagut, Rikky Rahmat Firdaus, in his remarks delivered by Yanin Kholison said, participating interest of 10 percent in the Rokan Block, one of the largest oil and gas producers nationally, has an important meaning for the upstream oil and gas management phase for both national and regional interests. This is because the state has regulated the policy that oil and gas producing regions through BUMD are given the right to be involved in managing the Migas Working Area through an investment of a maximum of 10 percent Interest, as regulated in Permen ESDM 37/2016.

"We hope that the due diligence phase and data access can run smoothly, so that the entire process of transferring the Participating Interest to the Riau Province BUMD in the Rokan Block can be accelerated," said Yanin.

Feri Sri Wibowo on behalf of PHR expressed his gratitude for the fast response of BUMD in giving a statement of interest and ability to offer PI in the Rokan WK.

Feri added that PHR has opened access to data that provides information related to the Rokan WK, including potential reserves and the capability of the Rokan WK production, so that it can be used by RPR to conduct studies.

"With the signing of CA and the opening of the Rokan WK data, PHR hopes that the due diligence process will go well and continue to the next process," said Feri.

In accordance with the provisions of PERMEN 37/2016, the maximum amount that must be offered to BUMD or BUMN is 10 percent in a Working Area that has obtained the first Plan of Development (POD) approval or extension of WK.

Regional involvement through PI ownership in a WK is expected to provide many benefits. Among other things, providing profit-sharing benefits to BUMDs that will contribute to regional income.

In addition, it also strengthens the role of regions in maintaining and increasing oil and gas production from a WK.