KOMPAS.com – Major oil and gas companies intend to withdraw from Indonesia. Some companies are still looking for a replacement in their current projects.
Meanwhile, Indonesia’s Defense Minister Prabowo Subianto has announced that his office has yet to finalize the country’s defense budget.
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Investors Pull Out of Upstream Oil, Gas Activity in Indonesia
US oil and gas producer ConocoPhillips plans to release its participating interest (PI) rights in the Corridor Block after other upstream oil and gas investors withdrew from Indonesia’s oil and gas blocks in recent years.
Fatar Yani Abdurrahman, deputy head of the Upstream Oil and Gas Special Regulatory Task Force (SKK Migas), said that the intention had been conveyed to SKK Migas.
"Their intention [of releasing PI] has been conveyed verbally,” Kontan.co.id quoted Fatar on Monday, May 31.
Although they have verbally stated their intention, ConocoPhillips has yet detailed the reasons for releasing PI in the Corridor Block. Fatar also confirmed that no plans for a meeting have been made at this time. SKK Migas is still waiting for an official proposal to be submitted by ConocoPhillips.
Separately, ConocoPhillips vice president for Commercial and Business Development Taufik Ahmad did not comment further on the matter. "Until now there has been no additional information apart from what was said by SKK Migas," Taufik told Kontan.co.id on Tuesday, June 1.
Currently, ConocoPhillips holds a 54 percent participating interest in the Corridor Block, while Spain’s Repsol Energy and Indonesia’s Pertamina hold a 36 percent and 10 percent participating interest, respectively.