The ROW at Raja Block

The cooperation between Pertamina and Golden Spike Indonesia has not worked well. So far, it has only resulted in a few hundred barrels of oil per day, yet the Central Jakarta District court has ordered the state-owned oil and gas company Pertamina to pay Golden Spike trillions of rupiah in damages. So Pertamina's decision to take the case back to court as a cassation is appropriate.

Back on July 6, 1989, the two companies signed a revenue-sharing contract to process the oil at Raja Tempirai block. They immediately formed a joint operating body (JOB). At first, all went smoothly until 2007 when Golden Spike experienced difficulties in repaying its debts around the Raja block.

November 24, 2015