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Govt Evaluates Restoration Plan at Chevron Operated Oil Block

Translator

Editor

8 July 2017 18:30 WIB

Arcandra Tahar (Left) and Ignasius Jonan. TEMPO/Aditia Noviansyah

TEMPO.CO, Pekanbaru - Energy Deputy Minister Arcandra Tahar observed the oil well in Rokan Minas and Duri Block managed by Chevron Pacific Indonesia. Arcandra examine the problem directly himself of the aging pipeline and the crude oil contaminated soil.

“I’m checking the suggestion on pipe replacement and environmental restoration,” said Arcandra on Thursday, July 6. He himself observed the old main oil pipe in Riau.

He said that the government should at least acknowledged the attempts done by Chevron to maintain the 50 years old main oil pipeline before the restoration process is started.

Read: Chevron Evaluates Enhanced Oil Recovery Project in Rokan Block

A 50-year-old of 120 km pipe section needs to be replaced in Rokan Block such as in Minas, Duri, Dumai, and Bangko. “It can be an environmental hazard if it’s not replaced soon,” said Arcandra.

He said the government had been focusing on crude oil contaminated soil throughout the exploration. “We need to rehabilitate it so it won’t risk the environment and human,” he said.

The government is collaborating with several related state agencies to decide the method should they use to rehabilitate the crude oil contaminated soil.

But Arcandra denied his arrival to the Rokan Block as well as in order to evaluate the continuation of Chevron's contract which will expire in 2021. He admitted that the Rokan Block deal is currently under discussion at the ministry.

"We are still evaluating," he said.

According to Arcandra, whoever will manage the Rokan Block, whether existing or new contractors, the government hopes oil production will not decrease from before. "At least to match the previous production."

The other provisions of the new contractor should provide better results to the government with participating interest (PI). The government should get a portion of 10 percent of these activities. "This is a form of our partisanship to the region," said Arcandra.

Although already classified as old blocks, Rokan Block still has great potential. This block is even the largest contributor to oil production in Indonesia. Throughout the first quarter of 2014, oil production from the block reached 230,170 barrels per day.

RYAN NOFITRA

 

Editor’s note: For better accuracy, we changed the term 'polluted area' into 'crude oil contaminated soil' and we also revised the title.




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