Pertamina takes control of Indonesian oil and gas block from Chevron

Pertamina aims to boost the block’s production capacity to 165,000 barrels of oil per day by the end of 2021.

The Rokan block is one of the Indonesia’s largest oil and gas blocks. Credit: Chevron Corporation.

Indonesian national oil company PT Pertamina has taken control of the Rokan block located on Sumatra island from Chevron.

The takeover by Pertamina upstream subsidiary PT Pertamina Hulu Rokan (PHR) follows the expiry of contract held by Chevron’s local arm, PT Chevron Pacific Indonesia.

Chevron Pacific Indonesia held 100% owned and operated interest in the Rokan Production Sharing Contract (PSC) for more than 96 years.

As Contractor of Cooperation Contract, PT CPI operated Rokan Block on behalf of the Government of Indonesia and worked under the supervision and control of regulator SKK Migas.

In 2019, the block reported average net daily production of 99,000 barrels of crude oil and 19 million cubic feet of natural gas.

Pertamina plans to increase production from the block to 165,000 barrels of oil per day by the end of this year by drilling 161 new wells, reported Reuters.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Offshore Technology.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company is expected to drill 500 new wells in the block next year.

Pertamina CEO Nicke Widyawati was quoted by Reuters as saying that the company it targeting to invest more than $2bn in the Rokan block through 2025.

Covering seven regencies/cities within Riau Province, the Rokan block is one of Indonesia’s largest oil and gas blocks.

It comprises five main fields, Duri, Minas, Bekasap and Kotabatak, and many smaller fields.

Duri is the block’s largest producing field, which came online in 1985.

Last month, Chevron launched Chevron New Energies, a low-carbon fuels business unit, which would also focus on investigating technologies ‘with the potential to scale’.

The new unit’s initial focus includes commercialisation opportunities in hydrogen, carbon capture, and offsets and supports biofuels production.