ConocoPhillips Asks to Extend Operations in Indonesia Gas Block

ConocoPhillips has asked the Ministry of Energy and Mineral Resources to extend its operations in the Corridor natural gas block after its current contract ends in December 2023, a ministry official said. (Antara Photo/Moch Asim)

By : Wilda Asmarini | on 5:13 PM September 03, 2018
Category : Business, Corporate News

Jakarta. United States-based energy giant ConocoPhillips has asked the Ministry of Energy and Mineral Resources to extend its operations in the Corridor natural gas block after its current contract ends in December 2023, a ministry official said.

ConocoPhillips (Grissik) had submitted a letter regarding its Corridor plans, but still needed to submit a formal proposal on the matter, Djoko Siswanto, director general of oil and gas at the Ministry of Energy and Mineral Resources, told reporters on Monday (03/09).

Without a formal proposal this month, the right to operate the block would be "given to Pertamina," Siswanto said, noting that the sizeable output from the block in South Sumatra would be attractive to the state energy company.

Taufik Ahmad, ConocoPhillips (Grissik) vice president for commercial and business development, confirmed that the company had sent the letter expressing its interest in extending its Corridor operations.

However, Ahmad said Conoco "still needed more comprehensive discussions" with SKKMigas, Indonesia's upstream oil and gas regulator, before it could submit a proposal for the extension.

Indonesia is pushing to nationalize more of its oil and gas assets as it tries to reduce imports and boost government revenues, but experts warn this approach discourages investors and global energy companies with expertise crucial to maintaining its energy output.

Corridor produced 828.4 million standard cubic feet of natural gas per day (mmcfd) on average from January to July this year, and is expected to churn out 810 mmcfd in 2019, recent SKKMigas data showed.

Repsol currently holds a 36 percent participating interest in the block.

Reuters

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