The eight oil and gas blocks that will be operated by Pertamina starting from 2018 are old blocks, with an age above 30 years. The old age of these fields means that production costs become higher. Considering production costs are not borne by the government under the gross profit sharing scheme, these fields are less attractive for private oil and gas companies.

Eight Oil & Gas Blocks to be Operated by Pertamina from 2018:

Blocks Current Operators
Tuban JOB Pertamina, PetroChina East Java
Ogan Komering JOB Pertamina, Talisman
Sanga-Sanga Virginia Indonesia Oil Company LLC, BP East Kalimantan, Upicol Houston
Southeast Sumatera CNOOC SES Limited, Inpex Sumatra, CNOC Sumatera, Talisman, Risco Energy
North Sumatera Offshore Pertamina
Tengah Total E&P Indonesia
East Kalimantan Chevron Indonesia Company
Attaka Chevron, Inpex

Source: Bisnis Indonesia

Meanwhile, Pertamina International Exploration and Production (PIEP), unit of Pertamina, announced it bid successfully for a higher stake in French oil company Maurel and Prom. PIEP increased ownership in the Paris-based company from 24.53 percent to 64.46 percent, hence becoming the controlling shareholder. This move is part of Pertamina's strategy to expand aggressively overseas amid improving global crude oil prices.