Indonesia: Chevron in talks to renew Siak Block, South Sumatra
17 Jan 2011
Chevron said it was in talks with the Indonesia government to extend its drilling rights at the Siak Block in South Sumatra. The licence for the block is due to expire in 2013.
Upstream regulator BPMigas received a letter from Chevron in September in which the company expressed its desire to extend drilling rights at Siak, said Elan Biantoro, a spokesman at BPMigas. Chevron has until November to submit a formal proposal, according to Biantoro. 'The Siak Block is a crucial part of Chevron’s Sumatra integrated operations, including supporting production from the Rokan Block,' Johnstone said.
In late December last year, it was reported that several domestic oil companies, including state-owned enterprises in Riau, had expressed interest in taking over operations of the Siak Block from Chevron. Chevron Pacific Indonesia (CPI) gained control over the Siak Block in 1963 after signing a 30-year contract, the maximum allowed by the government at the time. In 1993, it extended the contract by 20 years.
The Siak block, in Riau’s Siak district, covers 2,484 sq kms and produces 2,000 barrels of oil per day. The block’s strategic location is crucial to supporting integrated operations within CPI’s Rokan Block, which includes the crude oil-producing Duri and Minas fields.
CPI, an Indonesian unit of Chevron, produces 380,000 barrels of oil per day, or around 45 percent of the country’s total crude oil production.