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Pertamina to Manage ONWJ Oil and Gas Block

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28 November 2016 07:54 WIB

Pertamina Upstream Energi's (PHE) Offshore North West Java (ONWJ) block. ANTARA/Fanny Octavianus

TEMPO.CO, Jakarta - Energy observer asserted that state-owned oil and gas company PT Pertamina has the ability to manage oil fields that will soon be relieved off of private contractors hands', including the Offshore North West Java (ONWJ) oil and gas block, by cooperating with regional-owned enterprises.

"About [oil and gas block] management, I think it can be flexible. If the funds are enough, it would be better [for Pertamina] to manage the block by them self. But there's nothing wrong with to open possibilities to cooperate with other parties," said Komaidi Notonegoro, energy observer from ReformMiner Institute on Sunday, November 27, 2016.

Komaidi said that Pertamina is currently gaining trust to manage oil and gas blocks, specifically on blocks which contract has expired.

Ibrahim Hasyim, Chairman of the Oil and Gas Alumni said that there are a number of oil and gas field contracts that will soon expire which will be managed by state-owned companies and regional-owned companies. Later on, Pertamina will decide whether to manage the blocks alone or through cooperation with other business entities.

"There's no need to doubt Pertamina's [ability] because the company has continued to display increasing production," Ibrahim said.

The Indonesian Government will officially hand over ONWJ block management to Pertamina starting on January 19, 2017. However, the Government will also provide a 10 percent ownership rights for Migas Hulu Jabar, a regional-owned company in West Java.

ANTARA



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