Riau vying for Chevron block
Riau Provincial admnistration is establishing a consortium to acquire small oil block currently under Chevron Indonesia's management amid competition between two regencies in the province, Kampar and Rokan Hulu (Rohul), newspapers reported today.
The oil field known as Mountain Front Kuantan (MFK) block is currently operated by Chevron with production capacity of 500 barrels of oil per day. Chevron got the block in January 1975 for 20 years contract mature January 2005 but extended twice until January 2007.
While the oil field may be small, the block has been in dispute between Central Government and Regional administrations, and among the local administrations in Riau. Riau claimed that it could takeover the block, while Central Govt want an open bidding.
The original working area was 6,865 square km but Chevron had relinquished more than half the area to 3,000 sq km at the moment. State-owned Pertamina has 10% participating interest in the block. With 500 boepd, total revenue from the block could be US$12.77 million per year at US$70/barrel. It's so small for Chevron, but not that small for local companies.
READ MORE!!!
The oil field known as Mountain Front Kuantan (MFK) block is currently operated by Chevron with production capacity of 500 barrels of oil per day. Chevron got the block in January 1975 for 20 years contract mature January 2005 but extended twice until January 2007.
While the oil field may be small, the block has been in dispute between Central Government and Regional administrations, and among the local administrations in Riau. Riau claimed that it could takeover the block, while Central Govt want an open bidding.
The original working area was 6,865 square km but Chevron had relinquished more than half the area to 3,000 sq km at the moment. State-owned Pertamina has 10% participating interest in the block. With 500 boepd, total revenue from the block could be US$12.77 million per year at US$70/barrel. It's so small for Chevron, but not that small for local companies.
READ MORE!!!
posted by yosef at 11:37 AM
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