PHE Signs PSC Contract for Lavender Working Area in Sulawesi

JAKARTA - PT Pertamina Hulu Energi Sulawesi Lavender officially signed a Cooperation Contract (KKS) or Production Sharing Contract (PSC) for the Lavender Working Area (WK) with the Special Working Unit for the Implementation of Upstream Oil and Gas Business Activities (SKK Migas).

For information, the Lavender Working Area covers the offshore and onshore areas of South Sulawesi as well as the offshore of Southeast Sulawesi.

The signing of the PSC WK Lavender was carried out by the Director of PT Pertamina Hulu Energi Sulawesi Lavender, Ruby Mulyawan, and the Head of SKK Migas, Djoko Siswanto, in Jakarta on February 11, 2026, which was then followed by the signing by the Minister of Energy and Mineral Resources, Bahlil Lahadalia on March 17, 2026 as an initial milestone for the start of oil and gas exploration activities in the region.

WK Lavender is the sixth new work area signed by a subsidiary of PT Pertamina Hulu Energi (PHE) since 2023.

This signing reflects PHE's commitment and aggressiveness in expanding its exploration portfolio to obtain new oil and gas discoveries and reserves in Indonesia.

This step is also in line with the government's efforts to encourage increased investment in the energy sector, especially the upstream sub-sector of oil and gas, as part of strengthening national energy resilience.

"National energy resilience is not an option, but a necessity. PHE is at the forefront to ensure that oil and gas production is maintained today, while preparing Indonesia's future energy," said Ruby, Friday, April 17.

The Lavender Working Area was obtained through the direct bidding mechanism of the Indonesia Petroleum Bidding Round (IPBR) Phase 2 of 2025.

PSC WK Lavender uses a Cost Recovery scheme with a contract period of 30 years.

In this contract, PT Pertamina Hulu Energi Sulawesi Lavender was designated as the operator, with a total working area of 8,206.95 km².

The total value of the definitive commitment agreed in the WK Lavender PSC is USD 2.8 million, which will be realized through the implementation of Geological and Geophysical Studies (G&G), acquisition of 100 km of 2D Seismic, and 200 km² of 3D Seismic within the first three years of the exploration period.

Prior to the signing of the PSC, the contractor had fulfilled all financial obligations in accordance with applicable regulations, including the payment of a signature bonus of US$ 200,000 as well as the submission of an implementation guarantee to the Government through SKK Migas.

"PHE as a Subholding Upstream Pertamina will continue to invest in the management of upstream oil and gas operations and business in accordance with the principles of Environmental, Social and Governance (ESG)," said Ruby.