press release Signing of Rokan Block
Heads of Agreement

Jakarta, 28 September 2020 – SKK Migas together with PT. Chevron Pacific Indonesia (PT CPI) on 28 September 2020 sign the agreement to accelerate investment in Rokan Block to support the production and energy sovereignty in Indonesia.

The Chief of SKK Migas Dwi Soetjipto said that to optimize the production of Rokan block during transition, The Government needs to oversee the continuation of investment prior to the end of contract of Rokan block.

“Therefore, Heads of Agreement (HoA) and amendment of PSC is needed which contains the scope of drilling activities and reimbursement of investment costs at the end of the term, as well as Abandonment and Site Restoration reserve fund which was silent in this generation of PSC.” (28/9).

“This is a win-win agreement, as it enables and supports the continuation of drilling investment at the end of the Rokan PSC to manage production decline as well as providing solution to this generation of Production Sharing Contracts (PSC) where the PSC is silent on Abandonment and Site Restoration (ASR) reserve fund,” said the Head of SKK Migas, Dwi Soetjipto.

“It is our way to ensure the level of production will be maintained during the transition and beyond, which will be beneficial for both, the Government and the next operator. In short term, this is a concrete step to keep oil and gas production in 2021 from decreasing”.

The agreement signed in Jakarta between SKK Migas and CPI, current Rokan PSC operator, will enable CPI to continue drilling in the block ahead of the PSC expiry in August 2021.

The signing of the agreement was witnessed by Luhut Binsar Pandjaitan, Coordinating Minister for Maritime and Investment of the Republic of Indonesia; Arifin Tasrif, Minister of Energy and Rosa Vivien Ratnawati, Director General PSLB3, Ministry of Environment and Forestry.

“The commitment of PT CPI and SKK Migas and other parties involved in implementing the provisions contained in the agreement are able to realize what has been mutually agreed upon in fulfilling the achievement of production targets and state revenues as agreed during the State Budget Macro Assumptions Determination APBN 2021”, said Arifin in his remarks.

Arifin added that he would continuously monitor the implementation to ensure all parties remained aligned with the agreement, especially the implementation of drilling activities which will start in November 2020.

President Director of CPI, Albert Simanjuntak, said, “Under the operatorship of CPI, the Rokan block has been the cornerstone of the energy industry and has made significant contribution to the country development for many decades.”

“Today’s agreement is the result of the strong, collaborative partnership with the Government of Indonesia and ensures this strategic block will continue to play a central role in Indonesia’s energy sovereignty for years to come.”

“Following our agreement, we will work with SKK Migas to finalise the implementation.”