West Madura Block Contract to be Extended
Tuesday, 09 February, 2010 | 13:38 WIB

TEMPO Interactive, Jakarta:The State oil and gas firm Pertamina will extend its West Madura oil and gas contract with the South Korean company Kodeco.

“We have already make a deal to anticipate the end of the contract on May 11, 2011,” said the Managing Director of Pertamina subsidiary Pertamina Hulu Energi, Bagus Setiardja, yesterday.

The West Madura Block is an offshore oil and gas field.

The oil production there amounts to 14,000 barrels/day and its gas production 92 MMSCFD (standard cubic feet of gas per day).

The bloc contract was signed on 7 May 1981 with the stock ownership being Pertamina 50 percent, Kodeco 25 percent and CNOOC (China) 25 percent.

In the initial contract, the cooperation system used was a joint operating body, with a 50 percent share to Pertamina and 50 percent to private contractor.

In the new contract, the system used is a production sharing contract.

Under this system, the government will receive 85 percent of the production sharing and 15 percent will be divided between Pertamina and private entities.
SORTA TOBING