JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) signed a Cooperation Contract for the Oil and Gas Working Area or Production Sharing Contract (PSC) in two working areas in Sumatra and Sulawesi with the Cost Recovery scheme.
The signing strengthens the role of the upstream oil and gas industry as the Government's main partner in building sustainable energy security.
The signing was carried out by the Head of SKK Migas Dwi Soetjipto witnessed by Plt. Director General of Oil and Gas Dadan Kusdiana. The Mandate Working Area was signed by the Cooperation Contract Contract Contract Contractor, namely Director of PT Medco Energi Amanah Amri Siahaan; President Director of PT Sele Raya Sejati, Ham Eddy Tampi and Director of Kufpec Indonesia (Amanah) BV, Tareq Ebrahim, while the Melati Working Area was signed by the Director of PT Pertamina Hulu Energi Sulawesi Melati Muhamad Arifin; Director of SIEI Melati Limited Qin Shenggao and Director of Kufpec Indonesia (Melati) BV Tareq Ebrahim.
Acting Director General of Oil and Gas Dadan Kusdiana said that the Government continues to encourage investment in the upstream oil and gas sector.
"We have both witnessed the signing of the cooperation contract for the Amanah and Melati working areas, which is the result of the auction of the first phase of the oil and gas block in 2024," Dadan said in a statement to the media, Monday, October 14.
Dadan said the government continues to prepare a new oil and gas block. More than 60 oil and gas blocks are prepared for the next 5 years, in 2024 a second stage of bidding will be made after the newly formed government cabinet.
Meanwhile, Head of SKK Migas Dwi Soejipto said that Indonesia continues to encourage massive exploration to get oil and gas reserves.
The potential development of the Oil and Gas Industry and the opportunity to find reserves in the new block are still very large along with the increasing interest of investors in the upstream oil and gas industry. To support sustainable oil and gas production and efforts to achieve the targets set in the long term plan (LTP), namely oil production 1 million barrels per day (BOPD) and gas 12 billion cubic feet per day (BSCFD), new reserve findings must continue to be obtained," said Dwi.
He added that the signing of the Mandate WK and Melati WK showed that the prospects for oil and gas reserves in Indonesia were still there and at the same time showed the Government's success in continuing to build competitiveness in the oil and gas industry amid increasingly fierce competition with other countries and the ongoing energy transition.
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"This shows that the oil and gas industry is ready and will continue to be the main pillar of energy resilience," added Dwi.
The Amanah Working Area is located in Sumatra with a working area of 1,753.15 Km2 to be operated by PT Medco Energi Amanah with a Total Commitment Value of USD 3.15 million or IDR 50.4 billion by committing a 3-year commitment in the form of Geological and Geophysical Studies activities, 50 Km2 Seismic 3D.
For the Melati Working Area located onshore and offshore Southeast Sulawesi and Central Sulawesi, PT Pertamina Hulu Energi Sulawesi Melati will be the operator for the work area of 8,453.70 Km2. The Total Commitment Value is definitely 12.7 million dollars equivalent to Rp203 billion in the form of implementation of Geological and Geophysical Studies, 200 Km2 Seismic 3D, 250 Km2 Seismic 2D in the next three years.
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