TEMPO.CO, Jakarta - Tuesday, November 3, PT Medco E&P Indonesia has officially handed over the operation of Kampar Block in Riau to PT Pertamina Hulu Energi (PHE). Medco was previously appointed by the government to manage the block until transition period ends.
PHE is now the official operator of Kampar Block after signing profit sharing cooperation contract with the Upstream Oil and Gas Regulatory Task Force (SKK Migas). Medco was the operator of Kampar Block in 1995-2013 after released by previous operator, PT Stanvac Indonesia.
“The state gains signature bonus of US$5 million,” said Energy and Mineral Resources Ministry spokesman Hufron Asrofi on Tuesday.
PHE signed a firm commitment of geology, geophysics, reservoir and production studies for the first three years. The contract also includes commitment to drill five wells and one exploration drill. The total worth of the contract is US$12.5 billion.
Kampar Block stretches in a 469 square kilometers area. The oil reserve in this block is 200.386 MMSTB. Based on SKK Migas’ data, the block’s oil production until last month was 1,380 barrels per day.