JAKARTA Thu Nov 28, 2013 3:44am EST
Nov 28 (Reuters) – Indonesia’s energy ministry will not renew Chevron Corp’s oil contract at a small oilfield in Sumatra and will hand over management to state-owned oil firm Pertamina, industry officials said.
The transfer of the Siak oilfield, which produces around 4,000 barrels per day, is part of a government effort to curb foreign ownership and grab more revenue from its natural resources.
“While Chevron is disappointed that the production sharing contract for the Siak block will not be extended, the company respects the decision,” the U.S. oil firm said in a statement.
Chevron’s contract expired earlier this week.
The oilfield represents only a small fraction of Chevron’s total energy production in Indonesia of around 320,000 barrels of crude and 636 million cubic feet of natural gas per day. Chevron is Indonesia’s largest oil producer.