The Government Forms A Special Exploration Team For West Indonesia, Here Are The Details

JAKARTA - The recent discovery of Gas Resources in the western part of Indonesia, namely South Andaman, raises hopes that the potential for oil and gas in the region is still prospective. This condition makes policy makers and investors pay serious attention to the western region of Indonesia.

Advisor to the Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Nanang Abdul Manaf, revealed that the government is paying serious attention to the potential for oil and gas in western Indonesia by forming a special exploration team that conducts studies to prepare data that contractors can follow up later.

"We know that the western part of Indonesia has been studied by many companies, what is new? The difference is in our study, currently supported by the minister directly After several years we can see the difference. It seems that many discover is promising. Some companies also continue to invest. We use large data, we access data that has a company, the geological body is gas, integrated data, we provide not only technical and condition," explained Nanang in a statement to the media, Saturday, May 18.

Nanang said, based on data from the exploration team formed by the government, there are three basics that are the focus to be developed, including North Sumatra Basin, South Sumatra Basin and North Java Basin.

"The team found that in North Sumatra Basin, for example, there were 500 million barrels of oil equivalent (MMBOE) of resources found or there were more than 50 findings that had not been developed," said Nanang.

Meanwhile, in South Sumatra Basin with the structure of the basic conditions there are still 350 reserve findings. Then there are 11.4 billion BOEs that have been identified but have to go through an advanced exploration process. Then there is also North East Java Basin more than 9.9 billion barrels of oil equivalent (BBOE) identified and ready to be found which is estimated to be in six sub bases.

"The latest is Tangkulo-1 which Mubadala found to prove great potential in the area," said Nanang.

Ariana Soemanto, Director of Upstream Oil and Gas Program Development at the Ministry of Energy and Mineral Resources (ESDM), explained that the government's optimism for the development of the western part of Indonesia is reflected in the realization of the oil and gas block signing since 2021 with a total investment commitment to exploration reaching 16 trillion US dollars.

Of the 21 blocks signed by his contract as many as 20 blocks are in western Indonesia.

"This has happened since the term and condition contract was more attractive in effect," he said.

Furthermore, from 2024 to 2026, the government will identify as many as 27 areas that are planned to be offered to investors.

"Of the 27 candidate areas to be offered, 53 percent of them are located in western Indonesia," said Ariana.

Currently, the government, said Ariana, has also prepared a contract repair for gross split results. The latest Gross split is believed to be much simpler than the current one and is expected to provide investors with the choice to choose the best contract scheme that best suits the economy.

"The current status is that the final draft has gone to SKK Migas, after that we will proceed to the Ministry of Law and Human Rights," said Ariana.

Adnan Omar Bu Fateem, VP Operations Technical Mubadala Energy, revealed that the evidence that there will still be great potential in western Indonesia can be seen directly from the findings obtained by Mubadala Energy.

There have been three findings of Giant Discovery Mubadala in the last five years in the Andaman II block, namely in the Timpan I field in 2022 with an estimated reserve of 2 TCF.

"Then South Andaman in the Screen I field which was found in 2023 with an estimated reserve of 6.5 TCF and the latest Tangkulo I total reserve estimates reaching 2 TCF," said Adnan.