HCML Wants To Apply For A Contract Extension, This Is SKK Migas' Response

SURABAYA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) responded positively to the Husky-CNOOC Madura Limited (HCML) plan to apply for an extension of the concession contract at Madura Straits PSC.

Head of the SKK Migas Program and Communication Division, Hudi Suryodipuro, said that this contract extension would open up opportunities for further exploration.

Later, it will lead to additional reserves.

For your information, the current contract has a term of 20 years. The contract has been started since 2012 and will expire in October 2032.

"Hopefully if the HCML extension is approved by the government with an exploration commitment to be carried out properly, it can increase reserves to be channeled back to this area of operation," he told reporters at the HCML Metering Station (GMS), Pasuruan, East Java, written Tuesday, November 28.

Hudi assessed that the potential exploration of the Madura Strait field, which is being worked on by HCML, is still quite prospective in the future.

"We see that it is a shame that if these potentials are not pursued, they will be immediately explored because they are back again with facilities like this, which are relatively young, the sustainability of the field must be maintained," he said.

For information, the production of the HCML gas sales peak is currently 250 MMSCFD (million standard cubic feet per day) and is the largest in East Java and Central Java.

HCML currently has 3 main fields that have produced, namely Field BD, Field 2M, and Field MAC.

Previously, the Husky CNOOC Madura Limited (HCML) Cooperation Contract Contractor planned to apply for an extension of the Madura Straits Block product sharing contract (PSC).

The contract extension will be carried out in the first quarter of next year.

VP Operations HCML Perkasa Sinagabariang said the contract extension was also aimed at continuing exploration.

Especially to explore potentials that have not been developed.

First, if an extension proposal is carried out, if it is approved, it means that we will explore the potentials that have not been developed. Currently, there are several field potentials that have been listed but have not been drilled," he said when met at the HCML Metering Station (GMS), Pasuruan, East Java, Monday, November 27.

Perkasa explained that the application for a contract extension to be submitted contained plans for further exploration after the concession ends in 2032.

"Of course, if we don't do anything in 2032 when it's expired, maybe only a quarter of the production from now on," he said.