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Monday, April 26, 2021

the Confusion over Management of the Rokan Block

 


    The government, in this case, the Ministry of Energy and Mineral Resources (ESDM) and SKK Migas, are asked to immediately step in to resolve a number of issues that remain in the process of transitioning the Rokan Block from PT Chevron Pacific Indonesia (CPI) to Pertamina Hulu Rokan. The reason is, according to the management transfer contract, it must be carried out on August 9.

"Transfer of management will be carried out on August 9, 2021. However, it leaves many problems. The EOR issue has not yet been resolved, but the electricity problem has reappeared which will affect the transition process. We ask the Government's firmness to deal with this immediately. The state should not be defeated by private corporations that have the potential to harm the state for their activities so far, "said Executive Director of Energy Watch Mamit Setiawan.

    Mamit even asked law enforcement officials to intervene considering the potential crimes that could harm the state during the electricity and steam leasing process which has been done by Chevron Pacific Indonesia with PT Mandau Cipta Tenaga Nusantara (MCTN).

"Chevron's footprint in Indonesia must be investigated until it is clear before the transition process is carried out. Don't let the Rokan Block electricity become scraped (catch a cold), "he joked.

    As is known, Pertamina, through their subsidiary Pertamina Hulu Rokan (PHR) on February 1, 2021, has signed a power and steam sale and purchase agreement with PLN.

"PLN itself has proposed 2 options related to this agreement, namely in the short term until 2024 they have to build transmission and distribution lines," he said.

    This is because so far Chevron has rented electricity and steam from PT Mandau Cipta Tenaga Nusantara (MCTN) since 1998. Ironically, MCTN's ownership is 95% owned by Chevron Standard Limited and 5% by Nusagalih Nusantara. So that it is pointed out that Chevron Pacific Indonesia has carried out transfer pricing since 2008.

"This was disclosed by the Supreme Audit Agency (BPK) in 2006 where Chevron asked the government to return the cost of renting electricity and steam from the government since collaborating with MCTN," he said.

    This process, said Mamit, has the potential to cost the state US $ 210 million. Based on information from SKK Migas, Chevron pays the US $ 80 million annually for electricity and steam leases to MCTN and this is included in the fees that are billed (EOR) back to the government.

"This proves that MCTN's assets must be returned to the state because the government has paid all the investment costs made to build MCTN's electricity and steam facilities," he said.

Investor Daily, Page-10, Monday, April 26, 2021

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