Chevron Corp’s production agreement at a small oilfield in Sumatra won’t be renewed by Indonesia’s ministry of energy as part of the country’s effort to reduce foreign ownership.
State-owned Pertamina will be given production rights to the 4,000 barrels per day Siak oilfield.
“While Chevron is disappointed that the production sharing contract for the Siak block will not be extended, the company respects the decision,” a statement released by Chevron said.
Chevron’s production agreement expired this week.
Chevron will still be Indonesia’s larges producer, with output of 320,000 barrels of crude and 636 million cubic feet of natural gas per day.