Extends Work Contract Of MontD'Or Oil Tungkal Ltd To 20 Years In Jambi, SKK Migas Expects Additional Contribution Of National Oil And Gas Lifting

JAKARTA - Cooperation Contract Contractor (KKKS) MontD'Or Oil Tungkal Ltd. (MOTL) is said to have officially received a 20-year extension of the Tungkal Working Area (WK) management contract in Jambi Province.

The Head of Representative of SKK Migas for Southern Sumatra, Anggono Mahendrawan, said that this agreement is expected to make a better contribution to the achievement of national oil and gas production and lifting.

“Thirty years have passed and now the milestone in the management of the Tungkal CA for the next 20 years has been extended through a gross split contract. Hopefully MontD'Or can continue to make various innovations to maintain the stability of national oil production," he said in a written statement on Friday, August 26.

According to Anggono, MOTL currently operates two oil fields, namely Pematang Lantih Field and Mengoepeh Field with an average oil production of 745 BOPD (barrels of oil per day) or an achievement of 124 percent of the 2022 state budget target.

"We hope that the Tungkal WK can find new oil and gas reserves that can increase production potential in the next 20 years," he said.

On the same occasion, MOTL General Manager Ester Ksatrianto stated that the results achieved so far cannot be separated from good cooperation and coordination with SKK Migas and the Jambi Provincial Government.

"We would like to thank all parties who have helped us a lot and contributed to the smooth operation of operations from the initial exploration process to the achievement of lifting," he said.

Ester continued, the mandate given by the government was considered not an easy thing. For this reason, his party will strive to ensure that the agreed work commitments can be carried out properly so that they can continue to contribute to meeting national production targets.

Meanwhile, the Deputy Governor of Jambi Province, Abdullah Sani, welcomed the extension of this contract because it was the starting point for optimizing and managing the Tungkal CA.

"Through changing the contract to a gross split, we advise that MontD'Or can optimize and operate cost efficiency so that state revenues from upstream oil and gas can be optimized so that it can also provide benefits for the economy of the people of Jambi Province," said Sani.