More woe for Pertamina as Chevron readies Rokan handover

  • Date: 23-Apr-2021
  • Source: Energy Voice
  • Sector:Oil & Gas
  • Country:Gulf
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More woe for Pertamina as Chevron readies Rokan handover

Pertamina is set to take over the giant Rokan block from Chevron in Indonesia, but the Indonesian national oil company (NOC) appears to have no electricity supply to operate the site.

Chevron has been receiving electricity at the legacy block from a cogeneration steam and gas power plant operated by Mandau Tenaga Nusantara (MCTN), owned by a Chevron subsidiary. Significantly, the power plant is not included in the handover package to Pertamina. Chevron has opened a tender for the power plant with a price of $300 million, irking the Indonesian government.

Rokan, one of Indonesia's biggest oil producing blocks, needs a reliable and sustainable supply of electricity to operate. Any disruption in power supply would result in huge losses for Pertamina as it interrupts oil production.

Although Pertamina has signed a power supply deal with state-utility PLN, the required amount of electricity will not be available until 2024, once PLN has built new infrastructure. Crucially, the electricity supply source for the next three years remains in question.

“PLN, the Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas), the Energy and Mineral Resources Ministry and Pertamina all agree that PLN should take over the existing power plant. However, they consider the $300