SKK Migas Asks For Two Blocks To Enter PSN, This Is What The Minister Of Energy And Mineral Resources Said

Minister of Energy and Mineral Resources Arifin Tasrif (Photo: Doc. SKK Migas)

JAKARTA - The Special Task Force for the Implementation of Upstream Oil and Gas Business Activities (SKK Migas) proposed two oil and gas projects to be included in the National Stratis Project (PSN). The two projects are the North Gang which is located in the North Ganal Block and Red Kido Smoke (AKM).

The proposal received support from the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.

Arifin mengeaskan pada dasarnya pikanya mendukung dengan alasan kedua proyek ini dinilai sangat strategis terhadap industri upstream oil and gas dalam negeri.

"We really support it because this is very strategic for us," said Arifin when met by the media at the Ministry of Energy and Mineral Resources Building, Friday, December 1.

For information, the North Gang is one of the major findings by the oil and gas giant from Italy, ENI in 2023 which is located in East Kalimantan. To explore one well will cost 100 million dollars and is located off the coast.

SKK Migas estimates hydrocarbon estimates contained at 5.3 million TCF of gas and 389 million barrels of oil.

Meanwhile, based on the plan to develop the ENI, it is targeting to accelerate the development of the North Gang by adopting what has been done in the oil and gas field in Egypt.

Later the gas produced by the North Gang will be distributed to Bontang Plant and industry in Kalimantan. Thus, it will revive the operations of Bontang Plant from two trains to 4 trains.

Meanwhile, AKM Field is operated by Genting Oil Kasuri Pte. Ltd. with a production capacity of 330 MMSCFD and estimated to be available in the fourth quarter of 2025.

"Geng North Train at LNG is up to 5, while now AKM is for gas support for fertilizer factories," added Arifin.

Previously, Deputy for Exploitation of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Wahju Wibowo said the discovery of the North-1 Gang gas field in East Kalimantan was predicted to be the largest gas reserves in the world, thus driving gas production as energy transition to clean energy.

Then Deputy for Exploration, Development and Management of the SKK Migas Working Area Benny Lubiantara said the discovery of oil and gas reserves in the North Gang increased investment rating upstream oil and gas in Indonesia and the attractiveness of investors.

"Before the discovery of the North Gang, the rating assessment of attractiveness investors issued by HIS Markit, Indonesia's position had increased from 5.27 to 5.4 in the first quarter of 2023," said Benny in a statement to VOI, Wednesday, October 18.