10 May 2022 (closed)
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Pertamina Hulu Energi, subsidiary of state-owned energy firm Pertamina, has been officially appointed as the new operator of the Siak oil block in Riau (Sumatra) after the contract of Chevron Siak Indonesia (CSI) had expired on 27 November 2013. The Indonesian government decided not to renew the production sharing contract (PSC) with Chevron, instead appointing Pertamina Hulu Energi as new operator of the oil block (in line with the government's aim to have more domestic control over the country's natural resources).
Through newly established Pertamina Hulu Energi Siak, the company now holds 100 percent of participation rights in the Siak block, which consists of three oil fields, namely Lindai, Batang and South Menggala. The Siak block produces roughly 1,800 barrels of oil per day (bpd), but the production target has been raised to 2,000 bpd. With the addition of the Siak block, Pertamina Hulu Energi aims to boost production to 71,000 bpd.
After the contract between the Indonesian government and Chevron Siak Indonesia had expired in November 2013, the latter was requested to manage the Siak block for another six months as the government - through upstream oil and gas regulator SKK Migas - needed a transition period to appoint a new operator.