Chevron signs Rokan deal as Indonesia exit looms
Damon Evans
Consultant, analyst, editor, and journalist. Covering global energy for 20 years. Focus on Asia Pacific.
Indonesia is taking proactive steps in a bid to avoid a sharp drop in upstream production as state-backed Pertamina takes over more legacy assets from international oil companies (IOCs).
Chevron and Indonesian regulator SKK Migas have signed a deal on 28 September to accelerate drilling at the legacy Rokan Block to maintain output levels ahead of the production-sharing contract (PSC) handover to Pertamina in August 2021.
Rising resource nationalism has seen the government award Pertamina more and more expiring oil and gas blocks in recent years, replacing the IOCs that were operating the legacy contracts. These assets, and the scale of some of them, present technical challenges and a high degree of execution risk for Pertamina, particularly during the handover and transition periods.
This government-led asset grab created uncertainty for existing and potential investors in the sector. As a result, operators such as Chevron have scaled down their investments at the legacy fields, which has negatively affected production.
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4 年will be one of the largest transfer in the history of indonesia upstream. in term of all countable numbers involved.