Is Pertamina Returning Oil and Gas Blocks to the Government?

Summary

PT Pertamina is considering returning some of the oil and gas blocks that they manage to the government. This holding company of state-owned oil and gas enterprises will also team up with other parties to manage some of the blocks. The reason is that Pertamina will focus more on oil and gas blocks that have prime production performance. Pertamina Vice President Corporate Communication Fajriyah Usman said the plan to return the oil and gas blocks is still being discussed. The goal is to optimize Pertamina's upstream oil and gas performance. "We are currently evaluating several small-scale oil and gas blocks for collaboration with other parties," Fajriyah said on Monday (10/12).

The Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) Deputy Chairman Fatar Yani Abdurrahman welcomed Pertamina's plan to release oil and gas blocks that are no longer productive. Thus, Pertamina will have more power to better maximize the performance of production fields since there are many resources involved. "So, Pertamina really focuses on blocks that provide output, which is productive. Those with a small production of 500-300 barrels per day are just a waste of energy. The business process is the same, the procurement is the same, the amount of engineering is the same, but the results aren't better," Fatar said.

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