EAST NATUNA BLOCK CONTRACT SIGNED SEPTEMBER

[CATEGORY: OIL AND GAS]

 

The Ministry of Energy and Mineral Resources will accelerate oil production in East Natuna Block. Director General of Oil and Gas I Gusti Nyoman Wiratmaja promised that block production sharing contract could be signed Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) with PT Pertamina (Persero) next month.

"We are prepared to document the PSC. In September, is expected to be a signature," said Wiratmaja.

The plan, the oil will be produced starting in 2019. Wiratmaja let Pertamina looking for partners. Currently, the two companies have joined in the study of the development of Natuna since the beginning of last year, namely ExxonMobil and PTT Thailand. The government will share the results of oil production in accordance with the provisions, are 85 percent for the state and 15 percent to the contractor.

East Natuna concession period, he added, will also be in accordance with the applicable rules. The period is 10 years of exploration and 20 years for the production period.

The government is targeting oil development could begin in 2019. Production is estimated at 7-15 thousand barrels per day. On a nearby island, Pertamina will build a mini refinery with a capacity of 20 thousand barrels per day. Processed plant will be sold to fuel fishing boats around Natuna.

 

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