Dismissing Assumptions Of Foreign Investors Leaving Indonesia's Oil And Gas Sector, SKK Migas Signs Cooperation Contracts With BP And Petronas

Head of SKK Migas Dwi Soetjipto. (Photo: ANTARA)

JAKARTA - The government through the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has signed a cooperation contract for three working areas with British Petroleum (BP) and its subsidiary Petronas. Among them are the Great Working Area I, the Great Working Area II and the North Ketapang Working Area as a result of the second direct bid auction in 2021

The signing of the cooperation contract was carried out at the office of the Ministry of Energy and Mineral Resources (ESDM), witnessed by the Minister of Energy and Mineral Resources and related officials of the Ministry of Energy and Mineral Resources.

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said that the signing of this cooperation contract was an encouraging thing because it could dispel pessimism that foreign investors were starting to leave the upstream oil and gas industry.

"Foreign investors are expanding their working areas and investment commitments which show that the competitive climate of Indonesia's upstream oil and gas industry remains competitive. As long as the upstream oil and gas economy is competitive, it will attract foreign and domestic investors to invest in the upstream oil and gas industry," Dwi explained in a statement to the media, Tuesday. June 21.

He added, the Government will continue to provide support for efforts to increase the competitiveness of the upstream oil and gas industry, because it is part of efforts to realize the 2030 target, namely oil production of 1 million barrels per day (BOPD) and 12 billion cubic feet of gas per day (BSCFD). national energy security.

Meanwhile, the definite work commitments for the Agung I, Agung II and North Ketapang work areas totaled 12.14 million US dollars, which included a 2D seismic survey of 4,000 km, a 3D seismic survey of 300 km2, and a signature bonus of 700 thousand US dollars.

The signing of the cooperation contract shows that in the midst of the energy transition process, upstream oil and gas investment in Indonesia still has attractiveness and is in demand by foreign investors from the UK and Malaysia.

The Agung I, Agung II and North Ketapang working areas have not yet been explored but have promising oil and gas resource potential close to areas that are in the process of interconnecting gas pipelines that will connect the gas-rich East Java and surrounding areas with Central Java and West Java. which is in dire need of gas.

"We welcome the signing of a cooperation contract with BP Agung Limited II for the Agung I working area with an area of 6,656 km2, BP Agung Limited II for the Agung II working area with an area of 7,970 km2 and Petronas North Ketapang Sdn. Bhd for the North Ketapang working area with an area of 3,121 km2. We will immediately coordinate with them to begin discussing the steps that must be taken so that the working area can be immediately explored," he explained.

Furthermore, Dwi conveyed that SKK Migas was openly welcoming and ready to provide the support needed so that the work area in the potential area could be immediately explored to find new oil and gas reserves.

"Looking at the capabilities and experience of BP and Petronas, which are international oil companies (OIC) and have working areas and oil and gas production that continues to grow and see fields that are already producing in Indonesia, we believe they will invest in a sustainable manner to fulfill their definite work commitments. determined in the work area," said Dwi.

Dwi added that the working areas of North Ketapang, Agung I and Agung II are close to working areas where oil and gas reserves have been found, so the chances of success in the CA are quite large. SKK will immediately encourage exploration to find oil and gas reserves.

"The increasing demand for gas is supported by adequate infrastructure, and the estimated price of oil and gas will remain at a high position for quite a long time, it will increase the economy of upstream oil and gas projects around the work area in the area. SKK Migas of course will not wait, but will pick up the ball, actively communicate and coordinate with KKKS, which today signed the cooperation contract so that investment can be realized immediately," he concluded.