Pertamina Redirects 10% of PI from Rokan and Kampar Working Areas to Riau Province

Jakarta, June 27, 2023 - PT Pertamina Hulu Rokan (PHR) and PT Pertamina Hulu Energi (PHE) Kampar signed an Agreement on the Transfer and Management of 10% Participating Interest (PI) from the Rokan and Kampar Working Areas to Riau Province. The 10% PI rights are transferred through PT Riau Petroleum Rokan (RPR) and PT Riau Petroleum Kampar (RPK) as Regional-Owned Enterprises (BUMD) and Regional-Owned Companies (PPD) designated by Riau Province to manage the PI in the Rokanand Kampar Working Areas. 

The official agreement signing was conducted by Chalid Said Salim, the President Director of PHR, who also serves as the Director of PHE Kampar, along with Ferry Andriadi, the Director of RPR, and Pebriansyah Putra, the Director of RPK. The signing ceremony was witnessed by the Head of SKK Migas Sumbagut Representative, Rikky Rahmat Firdaus, and the Assistant II of Riau Provincial Government, Job Kurniawan, in Jakarta on Tuesday (27/6).

Chalid Said Salim stated that the region’s involvement in managing the oil and gas working areas through this 10% PI could bring many benefits, including providing advantages to BUMDs, which will contribute to the local revenue. Moreover, the BUMDs’ participation enables knowledge and experience transfer in managing oil and gas working areas. "Undoubtedly, this PI will generate new income for the province and the districts in Riau. We believe this 10% PI transfer and management will postively impact the Riau people's welfare. This PI transfer success is inseparable from the good cooperation and close coordination between Pertamina, the Riau Provincial Government, the Ministry of Energy and Mineral Resources (EMR), SKK Migas, and the involved BUMDs. May the trust embedded in this Agreement be jointly implemented successfully as an expression of our devotion and dedication to our beloved nation, Indonesia," said Chalid.

On this occasion, Job Kurniawan, the Assistant II of the Riau Provincial Government, expressed gratitude and appreciation for the Agreement on the Transfer and Management of 10% PI in the Rokan and Kampar Working Areas. "We thank Pertamina and SKK Migas for their support and collaboration. We hope this good cooperation will continue. Together with the entire Riau people, we are ready to support Pertamina in achieving the performance targets set by the government. Pertamina is a part of Riau Province that we cherish and is a blessing to us," said Job Kurniawan. 

The 10% PI agreement for the Rokan and Kampar Working Areas signing is a manifestation of Pertamina's compliance with the regulations stipulated in the Minister of Energy and Mineral Resources (EMR) Regulation No. 37 of 2016 concerning the Provisions on Offering 10% Participating Interest in Oil and Gas Working Areas.

In the agreement for the 10% PI transfer, among other things, it is emphasized that all oil and gas operational activities in the Rokan and Kampar Working Areas will continue to be carried out by PHR and PHE Kampar as operators. Starting from the effective date of the transfer, PHR and PHE Kampar will bear the financing obligations of RPR in the Rokan Working Area and RPK in the Kampar Working Area as a priority. Conversely, RPR and RPK are required to reimburse PHR and PHE Kampar in an equivalent amount, which will be deducted or taken from the profit-sharing rights that belong to RPK and RPR.

The agreement also stipulates the RPR and RPK’s obligations to support a conducive environment and conditions creation for oil and gas operations implementation in the Rokan and Kampar Working Areas. If requested by the operator, RPR and RPK are obliged to assist in various processes of issuing/extending permits to the Regional Government, as well as the Central Government, as long as such acceleration does not violate the provisions of the legislation.

During the duration of the profit-sharing contracts in the Rokan and Kampar Working Areas, RPR and RPK are not allowed to sell, transfer, assign, or divest the entire or partial 10% PI to any party, nor take any corporate actions that would result in changes in ownership of shares in RPR and RPK.

It is expected that with the 10% PI transfer to Riau Province, the impact can be felt significantly by the local communities and the Regional Government, fostering closer cooperation in the Rokan and Kampar Working Areas management.

Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, stated that the Rokan Working Area is one of the flagship oil and gas blocks that play a crucial role in building national energy resilience and self-reliance.

"The collaboration and support from the Regional Government are expected to drive an increase in oil and gas production, which will impact the local economy," said Fadjar.

"The 10% PI transfer to the Regional-Owned Enterprises of Riau Province is a tangible manifestation of Pertamina's commitment to collaborating with the Regional Government in improving the local communities’ welfare," concluded Fadjar.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**