Indonesia Rejects Extension of Chevron Oilfield Contract

From Oil Price

By Joao Peixe

Indonesian authorities have rejected the extension of a Chevron oilfield contract, which will be handed over to state-owned oil company Pertamina, as the country moves towards curbing the influence of foreign oil companies on its territory.

Chevron has been operating the Siak oilfield in Sumatra for 50 years, producing about 4,000 barrels of oil per day. While the field represents only a fraction of the US giant’s production in Indonesia, the handover of the license to a state-run company could bode ill for investor sentiment going forward.

Chevron produces around 320,000 barrels of crude and 636 million cubic feet of natural gas per day in Indonesia, and the Siak oilfield is among 29 oil and gas contracts that are set to expire between now and 2021.

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