Pekanbaru, Riau, Nov 29 (antarariau.com) - PT Chevron Pacific Indonesia has accepted the Indonesian government's decision not to extend its contract for the Siak block, a company spokesman has said.
"Frankly speaking, the company is disappointed, but Chevron respects the government's decision," Chevron's communications manager, Tiva Permata, noted in an e-mail to Antara here on Friday.
The block will be managed by PT Pertamina going forward.
Tiva added that Chevron, as a temporary operator of the Siak block, is committed to ensuring a safe and efficient transition to the state-owned energy company.
"Chevron is proud to have used world-class technology, practices and human resources to manage oil wells in the Siak block safely, reliably and efficiently in the interests of the Indonesian nation," Tiva said.
Tiva noted that Chevron had managed the Siak block since 1963.
"Back then, Chevron was called PT California Texas Indonesia. The contract for the block was extended in 1991 and continued until November 2013," the communications manager added.
Oil production from the Siak block, by the end of 2013, is estimated at between 1.6 thousand and two thousand barrels a day.
Earlier, the Indonesian government announced the termination of Chevron's Siak block contract as well as PT Medco EP's contract for the Kampar oil block. Both blocks have been handed to PT Pertamina.
"As of November 28, the management of both blocks has been handed to Pertamina," Energy and Mineral Resources Minister Jero Wacik said.
He pointed out that he had already informed oil and gas regulator SKK Migas and Pertamina about the transfer in management of the two blocks.
Jero Wacik added that the termination of Chevron's contract of the Siak block was based on Pertamina's ability to manage blocks producing up to two thousand barrels of oil a day.
The government also believed that after 20 years of Chevron being in charge, it was time to transfer responsibility of the block to Pertamina.
Pertamina to Take Over Siak Block From Chevron
