One of the reasons for the recommendation was the fact that the four blocks had entered the production stage, Luthfi said.
“BPMigas has submitted the recommendation to the Energy and Mineral Resources Ministry,” BPMigas planning deputy Achmad Luthfi said.
“Now it’s up to the government to decide.”
Block A and the Southeast Sumatra Extension block are operated by PT Medco E&P Indonesia. The contract for Block A will expire in 2011, while that for Southeast Sumatra extension will expire in 2013.
The government has repeatedly said the contract extension for Block A will be one of its priorities, as the block will deliver gas to PT Pupuk Iskandar Muda.
The contracts for both the Madura BD field, operated by Husky Energy Inc., and the Camar block, operated by Camar Resources, will expire in 2010.
Beside the four blocks, there are another two other blocks awaiting contract extension approval comprising of the Mahakam block, operated by Total E&P Indonesie, a unit of Total SA, and the West Madura block, operated by Kodeco Energy.
The Mahakam block contract will expire in 2017, while that for the West Madura block contract will expire in 2011.
Luthfi said BPMigas had not issued any decision about the contract extension appeal from the two blocks’ operators due to the regulator first wanted them to finish their acquisition negotiations with PT Pertamina.
“They must reach an agreement first, then we will process the request,” Luthfi said.
The Mahakam block is 50% owned by Total. Inpex Corporation owns the remainder.
Under the current regulations, part of the stake must be sold to domestic companies. Pertamina is reportedly eyeing a 15% interest in the block.
