Central Government Seeks Process of Transfer of Oil and Gas Block in East Kalimantan Runs Smoothly

By : Ridwan And Aldo Bella Putra | Wednesday, November 01 2017 - 15:00 IWST

Sektor Migas (Foto Ist)
Sektor Migas (Foto Ist)

INDUSTRY.co.id - Samboja- The government continues its utmost effort so that the process of managing oil and gas blocks in East Kalimantan can be done well.

"There are four other blocks in East Kalimantan (other than Mahakam blocks), which should work well," said ESDM Minister Ignatius Jonan in Samboja, East Kalimantan (1/11/2017).

He added that the oil and gas blocks that will expire in the next two years are East Kalimantan Block, Sanga-Sanga Block, Attaka Block, and Central Block. In fact, continued Jonan, instead of managing the Mahakam Block to be gamble national companies in running upstream oil and gas business.

"Mahakam block is a big gamble Pertamina, if the transfer of this makes the production down dramatically, then Pertamina's reputation and reputation of our upstream oil and gas will be less positive," said Jonan.

As is known, the government has appointed Pertamina to manage the Mahakam Block, effective as of January 1, 2018. This block was previously managed by Total E & P Indonesia in collaboration with Inpex. The contract period of the Mahakam block itself will be exhausted on 31 December 2017.

Meanwhile, Assistant II of East Kalimantan Province, Ichwansyah hoped that the transfer of oil and gas blocks in East Kalimantan could contribute to the regional economy through revenue sharing.

"The end of the oil and gas block contract (in East Kalimantan) has a risk of declining oil and gas production, which has an impact on regional revenue in the form of profit sharing funds," said Ichwansyah.

The government has actually regulated the ownership of oil and gas blocks for local government through Participating Interest (PI) of 10 percent.

"One of the main orders from President Jokowi is that PIs for the 10 per cent area must be implemented to fall into the hands of their respective local governments, not to fall into private hands," said Jonan.

News Comment

Today's Industry

Oleg Mogilevsky - Product Marketing Manager at Check Point Software Technologies (Photo by Linkedin)

Selasa, 10 November 2020 - 11:00 WIB

Five Reasons to Reevaluate Your Endpoint Protection

With the new emerging threats caused by remote working standards, security professionals need to reevaluate their approach to protecting endpoints. In order to do so, it’s vital that organisations…

Darrell Adams, Head of Southeast Asia & Oceania, Universal Robots (Photo by LinkedIn)

Selasa, 10 November 2020 - 10:30 WIB

Collaborative Robots Open New Horizons in Quality Control Processes

Collaborative robots (cobots) offer suitable solutions to manufacturers. Hence, cobot-based quality control and inspection systems that can transition between different end products in very…

Ilustration Hackers (Photo by Microwire.info)

Jumat, 30 Oktober 2020 - 11:20 WIB

Organisations Paid Hackers US$23.5 Million for These 10 Vulnerabilities in One Year

HackerOne report reveals cross-site scripting, improper access control, and information disclosure top list of most common and impactful vulnerabilities.

Clean Earth Technologies (CET)

Jumat, 30 Oktober 2020 - 10:30 WIB

Clean Earth Technologies’ New Class Of Polymers Invented By Associate Professor, Justin Chalker, Receives Australian Pm’s New Innovator Award

Associate Professor Justin Chalker has invented a novel class of polymers synthesised directly from elemental sulphur which is a waste by-product of the petrochemical industry and renewable…

Adi Ikan - Network Research & Protection Group Manager, at Check Point Software Technologies (Photo by Linkedin)

Jumat, 30 Oktober 2020 - 10:05 WIB

Measuring the Global Impact of the NSA’s Top 25 Vulnerabilities Being Exploited In the Wild

NSA’s list of top vulnerabilities were used to launch 3 million attacks in 2020, with 2.5 million of those attacks occurring in the last 6 months.