Pertamina Awaiting Iran Deal Decision

EghtesadOnline: State-owned oil and gas company Pertamina is awaiting a decision on the new Iranian Cabinet lineup in connection with its agreement to manage the country's Abteymour and Mansouri oilfields following Saturday's inauguration of reelected President Hassan Rouhani, Indonesia's deputy energy minister said.

News ID: ۷۴۳۲۳۹

12 August 2017

“Iran just formed its new Cabinet over the weekend. But they have promised us that an announcement [on the oilfields] will be made within four months at the latest,” Energy and Mineral Resources Deputy Minister Arcandra Tahar said in a press conference, Jakarta Post reported.

Arcandra had accompanied Maritime Affairs Coordinating Minister Luhut Binsar Pandjaitan of his state visit to Iran on August 5-7, during which he represented President Joko Widodo at President Rouhani's inauguration. During the visit, Luhut also sought the Iranian government's commitment regarding Pertamina's development of the two oilfields. Widodo had addressed the issue when he visited Iran in December 2016, according to Financial Tribune.

In its bid to manage the oilfields, Arcandra admitted that Pertamina was facing tough competition from two contenders: Denmark's Maersk and Russia's Lukoil.

“God willing, we will hear good news,” he said.

In March, Arcandra said the two oilfields have 3 billion barrels in proven oil reserves, while Indonesia's proven reserves stand slightly above this figure at 3.8 billion barrels.

According to Pertamina's development proposal, the number of oil wells in Abteymour field will increase from the current 50 to 257. Moreover, the recovery rate will rise from 2.27% to 12% and daily crude production will reach 300,000 barrels per day, Iranian media reported this week. Iran is known as an energy superpower, holding the world's fourth largest crude oil reserves and second largest gas reserves. But it lacks the physical infrastructure and know-how to tap into an ocean of offshore and onshore deposits.