Increase The Effectiveness And Efficiency Of Hulu, SKK Migas Support Synergy Of Pertamina EP And PHSS Working Areas

SKK Migas together with Cooperation Contract Contractors (KKKS) optimize work area management (WK). Photo: Doc. SKK Migas

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) together with Cooperation Contract Contractors (KKKS) carried out a number of efforts to optimize the management of working areas (WK), one of which optimizes the management of overlapping working areas.

In order to optimize and synergize the use of overlapping working areas between PT Pertamina EP (PEP) and PT Pertamina Hulu Sanga (PHSS), SKK Migas provides support and approval for its implementation through the letter of Head of SKK Migas No. SRT-0097/SKKIAE00000/2023/S1, dated February 28, 2023.

The SKK Migas letter will form the basis for PEP and PHSS in carrying out a synergy project for the use of overlapping working areas (borderless depth right) at Sanga Sanga WK and Pertamina EP WK by referring to the concept of a cooperation agreement for PEP and PHSS synergies that have been mutually agreed upon.

The signing of a synergy cooperation agreement (JOA) for the PEP and PHSS overlap working areas has been signed in Bogor, today.

"The cooperation agreement (JOA) for overlapping working areas between PEP and PHSS is a very good breakthrough. SKK Migas appreciates the initiative of the KKKS as a form of synergy that benefits both parties in order to optimize overlapping working areas," said Deputy for Exploration, Development and Management of the Working Area Benny Lubiantara in his official statement, Friday, March 17.

"SKK Migas encourages and fully supports the JOA because it will increase the effectiveness and efficiency of overlapping work area management," he added.

Benny added, in addition to referring to the cooperation agreement, the synergy between PEP and PHSS was carried out with reasonability and emphasized the prudent aspect.

"Then, the implementation refers to the provisions of the cooperation contracts of each PTK that have been issued by SKK Migas, the approval of the Work Program & Budget (WP&B) 2023, and the provisions that are still valid," he said.

On the same occasion, Deputy for Exploitation of SKK Migas Wahju Wibowo hopes that, with the synergy of overlapping work area management between PEP and PHSS, it can not only increase effectiveness and efficiency, but also opportunities for increased oil and gas production in both KKKS.

"This is due to the potentials in overlapping working areas that were previously not utilized, with this synergy, there is no doubt to take advantage of the potential in overlapping working areas," he explained.

Wahju said, the upstream oil and gas industry this year has a more massive and aggressive work program than the previous year in line with investment commitments targeted in 2023 reaching US$15.5 billion or the largest in the last eight years.

The positive impact is a significant increase in the main activity of the upstream oil and gas industry, such as development well drilling programs that reach 991 wells or 40 percent above the long term plan (LTP) target, exploration well drilling has increased dramatically with investments reaching 1.7 billion US dollars, as well as investment investment in exploration well drilling in 2022 amounting to 800 million US dollars.

"The synergy between PEP and PHSS is a breakthrough form to optimize assets as one of the out of the box steps which is expected to increase productivity and performance of the upstream oil and gas industry," concluded Wahju.