JAKARTA, July 31 (Reuters) - Indonesia has decided Pertamina will take over operation of the Rokan oil block, the country’s second-biggest crude producing field, once Chevron’s operating contract there expires in 2021, Deputy Energy Minister Arcandra Tahar said on Tuesday.
A proposal made by Chevron for an extension of its Rokan block contract after 2021 was “far below” an offer made by Pertamina, Tahar told reporters at a press conference, referring to a comparison of projections of state revenue and other terms proposed by both companies.
State-owned energy company Pertamina will operate Rokan from Aug. 8, 2021 to 2041, under a gross split production sharing contract, he said.
“We’ve agreed on terms and conditions. All that’s left is for us to put this into a document that will be signed by Pertamina and the government,” Tahar said. (Reporting by Wilda Asmarini Writing by Fergus Jensen Editing by Louise Heavens)