Saturday, 25 May 2019 | 10:02 WIB

Managing Rokan Block, Pertamina Pledges to Save Foreign Exchange of $4 Billion

Employees of PT Pertamina.

JAKARTA, NNC - PT Pertamina (Persero) pledged an annual saving of $4 billion worth of foreign exchange (forex) from the management of the Rokan Block in Riau.

"And according to the proposal we have submitted to the government, managing the Rokan Block will increase Pertamina's upstream production that will reduce oil imports, thus saving up to four billion dollars of foreign exchange annually, and lowering downstream production costs in the long term," said Acting President Director of PT Pertamina Nicke Widyawati.

PT Pertamina welcomes the Government's decision through the Ministry of Energy and Mineral Resources in entrusting the management of the Rokan Block to PT Pertamina, based on information in Jakarta on Wednesday (8/1/2018).

This decision was taken purely on the basis of business and economic considerations after evaluating Pertamina's proposal for better performance in managing the block.

"We would like to thank the Government who has entrusted the Rokan Block management to Pertamina. We are confident to be able to compete with other contractors of cooperation contracts," Nicke said.

The decision of the government through the Ministry of Energy and Mineral Resources on Tuesday (7/31) became a milestone in the strengthening of the country's energy sovereignty, in accordance with the Nine Priorities (Nawacita) carried by the Government of Joko Widodo.

Acting President Director of PT Pertamina  Nicke Widyawati expressed confidence given to Pertamina to manage the block with production of more than 200 thousand barrels of oil per day is not apart from Government support.

Nicke added the oil characteristics in the Rokan Block is in accordance with the national refinery configuration, hence it will be processed domestically, i.e., at the refineries like in Balongan, Dumai, Plaju and Balikpapan.

In order to maintain production, Pertamina in its proposal also said that it will utilize Enhance Oil Recovery (EOR) technology which has also been applied in oil and gas fields of Pertamina, such as in Rantau, Jirak, Tanjung operated by Pertamina EP, including steamflood implementation which has also been done successfully in PHE Siak field.

"We believe the government carefully considers this decision, in the framework of national energy security, the saving of foreign exchange and the potential increase of dividends for the country. With this trust, we will optimize the resources of the nation's children who have previous experiences in managing oil and gas block," she said, quoted Antara.