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AsianOil SOUTH ASIA AsianOil

Image: Pakistan Global News

development of the province’s resources as well Initiative (BRI), which aims to develop trade
as Chinese-funded infrastructure projects. links that connect China with the rest of the
“Companies like the OGDCL are exploiting world. The CPEC is home to an estimated $62bn
Baloch resources in their strategy of extending worth of projects, including the upgrading of
the occupation of Balochistan,” CNN quoted a facilities at Gwadar. Chinese Foreign Ministry
BRAS statement as saying. The statement also spokesperson Zhao Lijian said on October 21
called for the suspension of all operations, that CPEC was an “important pilot project of the
while denouncing “all Chinese agreements BRI”, promoting the two countries socio-eco-
with the Pakistani occupying forces, and they nomic development.
stand null and void.” The Asia Times has reported that the Paki-
China is actively promoting China-Pakistan stani army provides a dedicated security detail
Economic Corridor (CPEC) as a key pillar of the of more than 15,000 troops to Chinese personnel
Beijing government’s ambitious Belt and Road working on CPEC projects. ™

SOUTHEAST ASIA

Pertamina “must” retain majority

stake in domestic partnerships

PROJECTS & INDONESIAN upstream regulator SKK Migas But early results from the transfer of the giant
COMPANIES has said state-owned Pertamina is free to form Mahakam gas field – the first major asset to be
new partnerships to help develop its oil and gas re-assigned from a foreign developer to Pertam-
fields as long as it retains its majority stake. ina once the contract expired – have proved a
The acting head of SKK Migas’ programme disappointment and have raised questions over
and communication division, Susana Kurniasih, the state company’s upstream capabilities.
said Pertamina’s search for new partners could Since taking control of Mahakam from
“Regulations help lead to a surge in exploration work. France’s Total and Japan’s Inpex in January 2018,
“The prevailing regulations provide an Pertamina has overseen a halving of the field’s
provide an opportunity for Pertamina to find partners production. The block produced 1.26bn cubic
opportunity for as long as they can maintain their position as feet (35.68mn cubic metres) per day of gas in
majority shareholder,” Indonesian language 2017, before falling to 624mn cubic feet (17.67
Pertamina to media outlet Kontan quoted her as saying on mcm) per day in the first half of 2020.
find partners as October 20. While Pertamina announced in August
Kontan noted that Pertamina had only a $105mn investment in three new rigs for
long as they can formed partnerships in 30% of its oil and gas Mahakam, these may not do much more than
blocks, compared with a global average of 80% help the field reach a production plateau.
maintain their across managed portfolios. The outlet quoted Pertamina has said the three rigs, set to be fin-
Pertamina president director and CEO Nicke ished by the fourth quarter of 2021, are projected
majority position Widyawati as saying that the company has not to deliver 120 mmcf (3.4 mcm) per day of peak
set a partnership target for its portfolio. production and account for 20% of the field’s
The company is looking for partners to help total output by 2024. Using these numbers as a
it develop a large swathe of fields that have been rough guide, Pertamina seemingly expects the
assigned to it under a government push for field to deliver around 600 mmcf (16.99 mcm)
greater control of the country’s oil and gas assets. per day of gas by 2024.™

Week 42 22•October•2020 www. NEWSBASE .com P9