Pertamina Gets East Ambalat Block Previously Held by Chevron

The Indonesian government has transferred contract for East Ambalat's oil and gas block, previously held by Chevron, to Pertamina, Jakarta Globe reported last week.

Chevron gave up the block citing rising tensions in the maritime border areas between Malaysia and Indonesia.

Wianda Pusponegoro, Pertamina's vice president of corporate communications, said Pertamina Hulu Energy, a subsidiary of Pertamina, will own the East Ambalat block outright. The East Ambalat PSC will be valid for 30 years, with production in the first three years estimated to be worth $8.5 million, Jakarta Globe added.

Pertamina hopes operating the block will also boost company’s contribution to national oil and gas production. The block lies 80 kms east of Tarakan at a depth of 2,000 meters, and covers a total area of 4,735 sq km. It is capable of producing as much as 40,000 barrels of oil per day.