VICO allows Pertamina to access the Data of Sanga-Sanga Block
KATADATA - PT Pertamina (Persero) can already access the data of Sanga-Sanga Block on Wednesday, January 20th 2016. The block belongs to VICO Indonesia, and the open access is allowed by VICO so that Pertamina can see the potential in the block, since Pertamina wishes to operate the block that is located in East Kalimantan after it expires in 2018.
The Senior President Upstream Strategic Planning and Operation Evaluation of Pertamina’s Upstream Directorate, Meidawati, said that Pertamina has inked a confidentiality agreement regarding the data that is shared between VICO Indonesia and Pertamina.
Meidawati said that the result from their review over the data of the block would be used to make the final decision, whether to take over the block or not, considering that until now VICO Indonesia has not submitted any proposal to renew the contract of the block.
According to Energy and Mineral Resources Ministerial Regulation No. 15/2015 about the management of oil and gas blocks that will soon expire, contractors must submit proposals no later than two years before a block expires. And in that regulation, there are three options for blocks that are about to be expired.
First, there can be contract renewal by contractors. Second, it can be taken over by Pertamina. Third, contractors and Pertamina can jointly manage the block. If contractors are not interested in a block anymore, then the block will be offered to Pertamina first.
Meanwhile, the ministry’s director for upstream oil and gas business development Djoko Siswanto has also allowed Pertamina to access the data of the block.
Sanga-Sanga Block is located in the same province as Mahakam Block, which is in East Kalimantan. The oil reserve of the block stands at 13,232 MSTB (thousand stock tank barrel) and the gas reserve stands at 448.96 billion cubic feet (BSCF). The current production is at 16,733 barrels of oil equivalent per day (BOEPD).
The contract to manage Sanga-Sanga Block will expire in 2018. The shareholders of the block are BP East Kalimantan (26.25 percent), Lasmo Sanga-Sanga (26.25 percent) Virginia Indonesia Co. LLC (7.5 percent), OPICOIL Houston Inc. (20 percent), Uiverse Gas & Oil Company (4.37 percent), and Virginia International Co. LLC (15.63 percent).
VICO currently operates seven productive oil and gas fields in Sanga-Sanga, and they are Badak, Nilam, Pamaguan, Semberah, Mutiara, Beras, and Lempake. Sanga-Sanga Block is also one of the mainstay blocks of the government to reach the target lifting of gas. In the State Budget 2016, the lifting of Sanga-Sanga Block is targeted to be at 193.88 million cubic feet (mmscfd).
