JAKARTA (Yosefardi) – Some 22 Oil and Gas Contractors of Cooperation Contract (KKKS) might be terminated as they failed to show commitments and failed to find oil and gas reserves on the blocks awarded by the Government of Indonesia.
Gde Pradnyana, secretary of Special Working Unit for Upstream Oil and Gas (SKK Migas), said his side has proposed temination of 22 oil and gas contractors, mostly because the contracts have been expired and they failed to find oil and gas reserves. “So as, They will voluntarily return the contracts to government,” he said.
The government had previously terminated contracts of Marathon Oil Corporation, for Pasang Kayu block in South Sulawesi. The Ministry of Energy and Mineral Resources is so far recommended to terminate 5 oil and gas contracts.
Indonesia expects to have proven reserves of oil of 3,592.13 mmbto and gas of 104.25 tcf this year. In 2012, the country produced 314.67 mmbto of oil and 2.98 tcf of gas.