Pekanbaru, (Antarariau.com) - Acting Riau Governor Djohermansyah Djohan said the law has given state energy company Pertamina the right over the Siak Block.
"The take over of the Siak Block by Pertamina from the old contractor has been arranged in the Oil and Gas Law," Djohermansyah Djohan said here .
The law regulates that Pertamina has the privilege right over an oil block after the old contractor has ended its contract.
The Siak block was formerly operated by PT Chevron Pasific Indonesia but its contract has expired.
Djohermansyah's statement was in answer to criticism by regional lawmakers Riki Hariansyah and Gumpita who said they regretted that the regional administration was not quick enough to grab the right to operate the oil block to be handed over PT. Bumi Siak Pusako , a company owned by the regional administration.
The energy and mineral resources ministry itself has officially handed over the right to Pertamina to operate the oil block which produces around 1,900 barrels of crude oil per day.
Djohermansyah said he did not agree that the region has lost all hope to gain from the oil block, saying the provincial administration has negotiated with Pertamina on possibility of PT. Bumi Siak Pusako having a share in the block.
PT. Bumi Siak Pusako has indicated interest in taking part in the operation of the block.
"PT. Bumi Siak Pusako has gained support from the district administration of Siak regency, which has the majority 70 percent share in the block," Djohermansyah Djohan said.
Earlier, in 2009, before PT Chevron Pasific Indonesia ended its contract, Riau governor asked the energy and mineral resources ministry to hand over the right to operate the block to PT. Bumi Siak Pusako when Chevron's contract had expired.
However, the district administrations of Rohul, Rohil, Kampar, and Bengkalis also submitted similar requests to the energy and mineral resources ministry.
A meeting was then held and an agreement was reached that a consortium of PT. Riau Petroleum was to take over the operation.
However, the ministry finally named Pertamina as the winner of the contract on its privilege right .
Pertamina Has Right Over Siak Oil Block: Governor
