Energy and Mineral Resources Ministry oil and gas Director General Djoko Siswanto has said PT Chevron Pacific Indonesia has proposed a higher split from the oil extracted in Rokan Block if the company gets a contract extension.
The demand was made when the company, the local unit of the United States-based oil and gas giant Chevron Corp, submitted a document to the government to extend the contract, which will end in 2021, the official said.
Djoko said initially that Chevron wanted to maintain the existing cost-recovery scheme.
“We said no way if they want to use the cost recovery scheme. But later, the company agreed to use the gross split production sharing scheme,” said the official, adding that the company had demanded a higher split.
Djoko said he did not yet know the exact split demanded by the company, as the company was now revising the document.
“We will evaluate [the proposal]. There is no agreement yet from the government,” said Djoko in Jakarta on Thursday as reported by kontan.co.id.
He said the higher split was needed because the company wanted to boost oil production by using the enhanced oil recovery (EOR) surfactant in full scale.
Djoko explained that with conventional technology, only 60 percent of oil reserves could be extracted, while another 40 percent could be extracted by using EOR technology.
Chevron projects that with the technology, the Rokan Block could produce 500,000 barrels of oil per day from the current 230,000 barrels per day. (bbn)
Source: News Desk / The Jakarta Post
8 June 2018