SKK Migas Signs Commercial South Hub Project Agreement

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) and Contractors involved in the South Hub project signed a commercial agreement on Thursday, September 25 at the SKK Migas office.

The commercial agreement was signed by the Head of SKK Migas Djoko Siswanto, Managing Director Eni Indonesia Roberto Daniele, Director of Pertamina Hulu Energi East Sepinggan Sunaryanto and Country Manager of Tiptop Indonesia Qin Shenggao.

Head of SKK Migas, Djoko Siswanto said this event marked the signing of five fundamental oil and gas commercialization agreements from six Working Areas (WK), namely WK Rapak, WK Selat Makassar, WK Sepinggan Timur, WK Ganal, WK Muara Bakau and West Ganal.

"The first three agreements referred to in the ENTIK procedure are intended to provide clarity on the rights and obligations of all parties during the commercialization of oil and condensates, while the two LNG Development Agreements are additional commercial agreements to support Financial Investment Decisions," explained Djoko, Saturday, September 27.

In his remarks, Djoko conveyed that the LNG development agreement was very important in the milestone of the South Hub Project. According to him, this project will supply gas for domestic needs in East Kalimantan through the East Kalimantan System.

"Meanwhile, the rest of the gas will be processed into LNG at the Badak LNG Refinery, which directly supports our national energy resilience," said Djoko.

Djoko added that in total, the project will produce an additional 2,000 BSCF of gas and 19 million barrels of condensates, as well as optimize Jangkrik FPU with production from Jangkrik, Meres, Gendalo, Gandang, and Maha fields.

"As a continuation, Eni will also develop a North Hub Project, which is targeted to start operating in 2028. Together, these projects will produce greater efficiency, growth, and benefits for Indonesia and its people," he explained.

On this occasion, Djoko expressed his sincere appreciation to all parties for his dedication and collaboration which has allowed the achievement of this milestone. He hopes that the signing of this agreement will pave the way for rapid realization, not only for the South Hub project, but also for the North Hub Project, in order to secure and strengthen national energy security.

"With the spirit of collaboration and joint goals of SKK Migas and South Hub Contractors, I believe that we are taking an important step towards a stronger and more sustainable future of the Indonesian oil and gas industry," said Djoko.