Pertamina Welcomes Iraqi Offer to Manage Oil and Gas Block

State oil and gas company PT Pertamina welcomed an Iraqi government plan to resume Pertamina’s management of that country’s oil and gas block.

The statement was made by Pertamina’s Communications Corporate Vice President Mochamad Harun in Jakarta Tuesday in relation to the Iraqi offer to resume building the oil and gas block in that country following disruptions by the war.

In this context, Harun said previously Pertamina explored the oil and gas block in Iraq called Western Desert. Pertamina has also won a tender in Tuba Block, but as the result of the war the development of the two blocks cannot be continued.

"We still have a block there which we can optimize again. Besides, if there is a new offer, we are also ready to develop the block already operating," he said.

To smoothen the realization of the plan, the state oil and gas company said it had already made intensive talks with the Iraqi energy ministry. "For the details, we must have further talks, but the communications with the Iraqi energy ministry had been stopped," Harun said.

Previously the Iraqi government was hoping Pertamina would again take part in the management of the oil and gas block in that country, which was disrupted by the 1999 war.

"We wish Pertamina would rejoin Iraq in the oil and gas block and we also wish Pertamina would win the tender," Indonesian ambassador to Iraq Ismieal S Muhsin said after meeting Energy and Mineral Resources Minister Jero Wacik at his office in Jakarta, Tuesday.

With regard to the management of the oil and gas block, Ismieal said it is still in the bidding process. And the Iraqi side had also held talks with the government by way of the energy and mineral resources minister.

"We first had talks with the energy and mineral resources ministry, because actually Pertamina was wishing for a project in Iraq. But we will have further talks on the matter," Ismieal said.

He added that each year the Iraqi government opened a tender on the management of oil and gas block. Therefore he hoped Pertamina would resume its participation. "I think there will be so many benefits if Pertamina would join us," he said.

While hoping Pertamina would join the oil and gas block, the Iraqi government had yet to mention which oil and gas block had been offered to the state oil and gas company.

"I hope Indonesia would compete with Malaysia, China and Japan, especially that Petronas is also already in Iraq. Therefore we were hoping Pertamina will also join," he said.

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