REPUBLIKA.CO.ID, JAKARTA -- Chevron Indonesia Company said it will not seek extension of its production sharing contract for the East Kalimantan block in 2018.

The block would be returned to the government after the contract expires on Oct. 24 in 2018, Executive Director of Chevron IndoAsia Business Unit Chuck Taylor said in a statement here on Tuesday.

"We will continue to be focused on the safety of operation and will support handover of assets to the new operator," Taylor said.

He said the decision to return the block to the government would not affect the commitment of continuing the 90-year history of partnership in Indonesia to carry out strategic project such as Indonesia Deepwater Development (IDD).

"We are proud of the strong partnership with the people and government of Indonesia and commitment to supporting Indonesia in developing energy resources," he said.

Chevron is operating the East Kalimantan block supplying natural gas including for the Bontang Liquefied Natural Gas plant and Balikpapan oil refinery .

Based on data from the Upstream Oil and Gas Regulator (SKK Migas) , in line with the work program and budget in 2016, the East Kalimantan block's production target for crude oil and condensate is set at 14,470 barrels per day.

The target is lower than assumption set in the 2016 state budget at 17,590 barrels per day.

In term of production target, the East Kalimantan block is the 9th largest after the Rokan block (PT Chevron Pacific Indonesia), Cepu (Mobil Cepu Limited), PT Pertamina EP, Mahakam (Total E&P Indonesie), ONWJ (PT PHE ONWJ Ltd), South East Sumatera (CNOOC SES Ltd), South Natuna Sea Block "B" (ConocoPhilips Indonesia Inc Ltd), and Ketapang (Petronas Carigali Ketapang II Ltd).

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