Pertamina Hulu Energi Together With Posco ENP Officially Manages Flower Work Areas For 30 Years

Photo: Doc. Antara

JAKARTA - The PT Pertamina Hulu Energi North East Java consortium together with PT Posco International ENP Indonesia (Posco ENP) officially manages the Bunga Working Area (WK) for the next 30 years through the signing of a cooperation contract (KKS).

The signing was carried out at the opening ceremony of the 47th Indonesian Petroleum Association (IPA) Convex in Tangerang, Banten, Tuesday, July 25.

PT Pertamina Hulu Energi North East Java is part of the Pertamina Upstream Subholding coordinated by PT Pertamina Hulu Energi (PHE).

PHE President Director Wiko Migantoro, through an official statement Wednesday, July 26, explained the signing of the KKS WK Bunga emphasizing PHE's commitment to increase its portfolio and find new domestic resources through exploration following the management of exploration assets of WK East Natuna and WK Peri Mahakam which were signed in the same year.

"Management of WK Bunga is also a tangible manifestation for PHE to increase capabilities in managing deep-sea assets. In addition, PHE is ready to partner strategically more broadly with Posco, where the management of WK Bunga is the first entry for Posco in an upstream oil and gas business in Indonesia," said Wiko, quoted by Antara.

KKS WK Bunga, which uses the form of a contract to distribute the cost recovery proceeds, was signed by the Director of Posco ENP Jeon-Hyeok Lee and Director of PT Pertamina Hulu Energi North East Java Endro Hartanto and the Head of SKK Migas Dwi Soetjipto.

The signing process for KKS WK Bunga was witnessed directly by the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif, President Director of PHE, Wiko Migantoro and President Director of Posco International Corporation (Posco) Tak-Jeong.

Minister of Energy and Mineral Resources Arifin Tasrif in the opening of the IPA revealed that in the era of energy, oil and gas transition, it still plays an important role in providing affordable energy.

"Currently, the upstream oil and gas industry is facing challenges to continue to contribute in supporting the reduction of emissions gas. Indonesia still has a lot of potential for energy development to support national energy sovereignty," said Arifin.

Meanwhile, the Head of SKK Migas Dwi Soetjipto stated that the entry of new investments in the upstream oil and gas sector is a very positive step. He believes that the investment will have a significant effect in accelerating oil and gas production so that it can help achieve the targets set by the government.

"After WK Bunga is signed, SKK Migas will immediately coordinate with the contractor of the cooperation contract (KKKS) to discuss work programs that will be implemented. One of the main focuses is related to a definite commitment. SKK Migas is committed to supporting and encouraging these programs to be implemented immediately," said Dwi.

The government has appointed PT Pertamina Hulu Energi North East Java and Posco ENP as managers of WK Bunga with participants or 50 percent of their respective participation rights and Posco ENP as operators.

WK Bunga is located in the deep sea off the coast of East Java with an area of 8,500 square km and a total investment commitment of the first 3 years of exploration, which includes geological and geophysical (G&G) study activities as well as acquisition and processing of 3D seismic data covering an area of 350 square km.

The partnership between Posco and PHE began with the implementation of a joint study (joint study) for the Interest Area in 2021-2022 with the discovery of several prospects with high expectations of exploration potential before the region was included in the 2022 phase II direct bidding auction. The Posco and PHE consortium was declared the winner of the WK Bunga live bidding auction by the government on February 21, 2023.

With the signing of the KKS WK Bunga, the consortium will carry out a full scale G&G study to evaluate exploration potential before the first exploration drilling is carried out.