Government Urged to Hand Over Rokan Block to Pertamina

By : Hariyanto And Aldo Bella Putra | Monday, July 30 2018 - 16:00 IWST

Chevron.(Ist)

INDUSTRY.co.id - Jakarta - Energy observer Sofyano Zakaria has asked the government to hand over the Rokan Block management, Riau Province, to PT Pertamina (Persero) after the contract with PT Chevron Pasific Indonesia in 2021.

"Just like the Mahakam block, East Kalimantan, the government should insist on not renewing the Rokan Block and subsequently submitting to state-owned company Pertamina as a form of fulfilling the mandate of Article 33 of the 1945 Constitution," he said in Jakarta on Monday (30/7/2019).

The government, he added, must prove his sovereignty to the national interest by submitting the Rokan Block to Pertamina.

According to him, Chevron has 50 years of managing the Rokan Block or since 1971, so it is quite appropriately diverted to the country through Pertamina.

In addition, he continued, Pertamina has also successfully proven capable of managing termination blocks including West Madura Offshore (WMO), Offshore North West Java (ONWJ) and Mahakam, well and has provided great benefits to the country.

"Pertamina has been proven and experienced, so it is feasible to manage the Rokan Block," said Director of the Center for Policy Studies Public (Puskepi).

Sofyano also said current Rokan Block oil and condensate production contributes about 25 percent or about 200,000 barrels per day of total national oil production of 800,000 barrels per day.

If the Rokan Block production is managed by Pertamina, then the crude oil could go to the state-owned oil and Gas Company, thus reducing crude oil imports and increasing foreign exchange.

"That is, if managed Pertamina, then the Rokan Block will further improve the national energy security," he said.

In addition, he added, Pertamina can grow and become one of the world oil and gas companies.

Sofyano also said that President Joko Widodo has succeeded in realizing his Nawacitanya concept in the oil and gas sector by handing Mahakam block to Pertamina, building fuel and LPG infrastructure throughout Indonesia, and realizing BBM Satu Price in order to give justice and to keep the state sovereignty.

"Therefore, the concept of Nawacita should be continued by submitting the Rokan Block to SOEs," he said.

Although it will not be until 2021, the government is scheduled to decide the management of the next Rokan Block in the near future.