Chevron wishes to extend Rokan block contract Coordinating Maritime Affairs Minister Luhut Pandjaitan says PT Chevron Pacific Indonesia (CPI), the local unit of the United States-based oil and gas giant Chevron Corp., has expressed interest in continuing its operation of the Rokan block in Riau, one of the most productive oil blocks in the country.
“They [company officials] told me that the block [Rokan] is good. […] They explained that their new technology will boost oil reserves in the block by up to 1 billion barrel,” he said.
Luhut’s statement was made after meeting with Chevron IndoAsia business unit managing director Chuck Taylor and CPI senior vice president for policy, government and public affairs Yanto Sianipar at Luhut’s office in Jakarta on Wednesday.
The minister said the oil firm also wanted to cut costs for Indonesia Deepwater Development (IDD) by up to 50 percent.
The auction of Rokan will begin in July as Chevron’s contract is slated to end in 2021. The new contractor must agree to the gross-split scheme.
Meanwhile, Yanto said he met with Luhut to update the government on Chevron’s achievements. When asked about the possibility of a contract extension, he only said “we always try to be punctual in every project.”
CPI’s contract for Rokan, which has a production capacity of 210,280 barrels oil per day, will not be automatically extended because many other companies, including state-owned oil and gas company Pertamina, have shown interest in taking over the block. Chevron wishes to extend Rokan block contract (bbn, Stefanno Reinard Sulaiman, The Jakarta Post)