The Government offers Krueng Mane Block to Pertamina

KATADATA - The government will offer Krueng Mane oil and gas block to PT Pertamina (Persero). ENI Indonesia Ltd, the operator of the block, plans to farm out its share ownership in the offshore block north of Aceh.

Energy and Mineral Resources (EMR) Ministry’s upstream oil and gas business development director Djoko Siswanto said that before it is auctioned later, the oil and gas block will be offered to Pertamina first because Pertamina is fully owned by the state.

“Indeed there’s a plan for ENI to farm out its [share ownership],” Djoko said in Jakarta, Tuesday (10/11). “Krueng Mane region will be offered to Pertamina since it is owned by the state.” 

Right now, ENI Indonesia Ltd has stopped all exploration activities in the block because the drilling activities for the oil reserve there are considered not economically efficient to be exploited. 

The halt in exploration is also done due to the low global oil price. With a low oil reserve and plunging oil price, the block is considered not to be profitable if the operational activities continue to happen. 

Pertamina’s upstream director Syamsu Alam said that right now his side still could not decide whether Pertamina will take the offer or reject it. The business development team of Pertamina is still conducting a review regarding the economic condition of the block.

“Basically, our decision to take it or not will depend on the review on the block’s economic condition as well as Pertamina’s portfolio as a whole,” Syamsu said to Katadata, Wednesday (11/11).