Exploration & Production

Pertamina told to up its game for expiring PSCs

The government of Indonesia has told Pertamina to improve its bids for four expiring PSCs, or existing operators will be allowed to extend their contracts The government of Indonesia has told Pertamina to improve its bids for four expiring PSCs, or existing operators will be allowed to extend their contracts.
By Damon Evans 12 January 2018 0 29067
An offshore rig at Indonesia’s Mahakam block. An offshore rig at Indonesia’s Mahakam block. (SKKMigas)

The Indonesian government has given NOC Pertamina until the end of January to resubmit its work programme and budget proposals for four soon-to-expire production-sharing contracts (PSCs), Ego Syahrial, secretary general of the Energy and Minerals Resources Ministry, told Interfax Natural Gas Daily.

If Pertamina misses the deadline, any existing operators that have already submitted a more competitive offer will be allowed to extend their operatorship, Syahrial said. The government has tasked Pertamina, which receives right of first refusal on all expiring PSCs, with taking over eight...