Govt. to Review PSCs, Threatens to Terminate Some
The government will extend the term of some of the 15 production sharing contracts facing expiry after 10 years if they do not submit a development plan by the end of 2007, Oil and Gas Director General at the Energy and Mines Ministry, Luluk Sumiarso, said Wednesday (26/9/07).
"Some of the 15 blocks will be extended, while some will be terminated. It will be decided on a case-by-case basis," Platts Commodity News quoted as saying.
Indonesia gives oil and gas companies a 10-year period to explore areas. But if they fail to submit a development plan by the end of that period, the contract can be terminated.
Among the 15 companies in danger of having their contracts terminated are France's Total E&P in offshore East Kalimantan's Saliki block, ConocoPhillips’ i Warim blockn Papua, Korea National Oil Corp. in offshore South Kalimantan's Wokam block, Australia's Santos in offshore East Java's Madura block, Malaysia's Petronas in Sumatra's Tanjung Jabung block and Pearl Oil in offshore southern Kalimantan's Sebuku block.
"We will extend the exploration contracts for contractors who could not continue their activities because of problems over forest areas or lack of rigs. But we will terminate the contracts of companies that have done nothing. We could offer the sites to other parties," Luluk said.
"Some of the 15 blocks will be extended, while some will be terminated. It will be decided on a case-by-case basis," Platts Commodity News quoted as saying.
Indonesia gives oil and gas companies a 10-year period to explore areas. But if they fail to submit a development plan by the end of that period, the contract can be terminated.
Among the 15 companies in danger of having their contracts terminated are France's Total E&P in offshore East Kalimantan's Saliki block, ConocoPhillips’ i Warim blockn Papua, Korea National Oil Corp. in offshore South Kalimantan's Wokam block, Australia's Santos in offshore East Java's Madura block, Malaysia's Petronas in Sumatra's Tanjung Jabung block and Pearl Oil in offshore southern Kalimantan's Sebuku block.
"We will extend the exploration contracts for contractors who could not continue their activities because of problems over forest areas or lack of rigs. But we will terminate the contracts of companies that have done nothing. We could offer the sites to other parties," Luluk said.