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.
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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.