State-owned energy firm Pertamina has submitted proposals to the government to manage six of eight oil and gas blocks offered by the government.
Pertamina’s upstream business director Syamsu Alam said the proposals were submitted to the Energy and Mineral Resources Ministry.
The blocks that were formerly managed by foreign oil and gas companies would be taken over by the government after their contracts expired in the near future.
“Our team has studied the commercial aspects [of the blocks]. The six blocks are economically sound,” said Syamsu at a press conference in Jakarta on Thursday, as reported by tribunnews.com.
Syamsu explained his company was waiting for the response from the ministry, while preparing for the next steps if the proposals were accepted.
Earlier this year, the government offered the eight blocks to Pertamina. “If there are [private] contractors who are interested in managing the blocks, they can directly ask the government because the decision is made by the government,” he added, adding that Pertamina could only manage six of them.
The eight blocks are Sanga-Sanga, operated by Virginia Indonesia Co LLC; South East Sumatra, operated by CNOOC SES Ltd; Tengah Block, operated by Total E&P Indonesie; East Kalimantan Block, operated by Chevron Indonesia Company; Attaka, previously operated by Inpex Corporation; North Sumatra Offshore (NSO); block-and-joint operating body (JOB) Tuban; and Ogan Komering blocks that were previously operated by Pertamina.