An Estimated Contribution Of IDR 31 Trillion To State Revenue, Government Agrees To The First POD Of Hidayah Field

JAKARTA - The government approved the plan to develop the first field or the Hidayah Field Plan of Development I (POD I) which is part of the North Madura II Working Area through a letter of approval from the Ministry of Energy and Mineral Resources dated December 27, 2022.

The field, which is operated by Petronas Cariglai North Madura II, is expected to start producing (onstream) in early 2027 with a production rate at that time in the range of 8,973 barrels of oil per day (BOPD).

This field is expected to reach its peak production by 2033 with a production range of 25,276 BOPDs.

This field is also expected to be actively producing for 15 years (2027-2041).

During that period, this field is expected to contribute to state revenues of US$2.1 billion or around Rp. 31 trillion.

"The Cariglai North Madura II soap operas have just found reserves after drilling three exploration wells in this area," said Head of SKK Migas Dwi Soetjipto to the media, Tuesday, January 10.

He continued, the last well to be drilled was Hidayah-1 which resulted in discoveries with an estimated oil reserve of around 88.55 Million Stock Tank Barrel (MMSTB).

Hidayah Field is located about 6 kilometers north of Madura Island In this area several oil and gas fields have already operated.

"This shows that if exploration is carried out, new fields will still be possible to be found even in areas where upstream oil and gas activities are quite dense," he continued.

Dwi added, SKK Migas encourages the acceleration of POD I Hidayah Field so that the oil resources found can be produced immediately.

"The completion of Hidayah Field Development is expected to increase oil production, so it is expected to play a role in reducing oil imports. In the future, of course, Hidayah Square will become one of the important contributors to achieving the oil production target of 1 million barrels by 2030," said Dwi.

Dwi conveyed that the current condition of oil production is still below consumption, so efforts to accelerate oil discovery so that it can be produced will always be a priority.

As for gas production above domestic needs, the rest is exported to strengthen foreign exchange.

The estimated costs required for the development of Hidayah Square include investment costs (outside the Sunk cost) which are estimated at around US$ 926 million; operating costs including the United Nations to the field reach an economic limit of around US$1.99 billion; and the cost of Abandonment and Sito Restoration (ASR) of around US$201 million.

The entry of investments like this is proof that the upstream oil and gas industry in Indonesia is still attractive in the eyes of investors. It's just a matter of how we work together to create a conducive investment climate," said Dwi.

With the approval of POD I Hidayah Field, the construction of production facilities can be carried out immediately.

"We hope that all stakeholders can provide full support for the development of Hidayah Square so that the contributions we estimate can be realized soon," concluded Dwi.