Pertamina takes reins at Siak

Indonesian state-run oil company Pertamina has taken over operatorship of the Siak Block on the island of Sumatra in Indonesia.

Local media reported Pertamina subsidiary Pertamina Hulu Energi was now officially managing the block in Riau after a partnership agreement on the management of the field between the government and US supermajor Chevron expired.

The government awarded the Siak production sharing contract to Pertamina without an open tender last year after the initial contract with Chevron expired.

The US company continued to operate the block over a six-month transition period before Pertamina officially took over at Siak.

The Siak Block currently produces at a rate of about 1800 barrels of oil per day from three fields - indai, Batang and South Menggala.

Pertamina has said it intends to increase output at the block to a rate of 2000 bpd.

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