Oilfields development
BPMigas endorses Pertamina to operate W. Madura block
BPMigas spokesperson Gde Pradnyana said the agency sent an official letter to the Energy and Mineral Resources Minister, Darwin Zahedy Saleh, containing recommendations on the future of the block. He added that the recommendations were made after meeting with the block's shareholders at the BPMigas office in Jakarta Wednesday evening.
“Through the letter, we delivered our recommendations on the block's future shareholder composition and the operator. The letter was signed by BPMigas head R. Priyono,” he reported at a press conference at his office.
During the meeting, BPMigas outlined three options concerning the future operator of the block, he said.
The first option is similar to agreements made by shareholders during an April 13 meeting saying that Korea-based Kodeco will remain the operator until Dec. 13, 2013, and after that the block would be operated by Pertamina.
The second option is appointing Pertamina operator of the block directly after the contract with Kodeco ends on May 6 this year.
The third option is granting Pertamina the right to operate the block starting May 7, but its performance in the first three years will be reviewed by BPMigas. If Pertamina fails to optimize the block's production, the right to operate the block may be revoked.
“We officially recommend that the government take the third option. However, the final decision is in Minister Darwin's hands. We still have to wait for the outcome,” said Gde.
Indonesian soldiers take defensive position as they protect a VIP vehicle in a mock terrorist attack during a security drill part of the preparation for the upcoming ASEAN Summit in Jakarta, Indonesia, Thursday. Indonesia will host ASEAN Summit that will be held May 4-8.
