SKK Migas Prepares IDR 46.8 Trillion For Oil And Gas Exploration

Oil and gas refinery (photo: SKK Migas)

JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Djoko Siswanto revealed that his party has IDR 46.8 trillion which will be used to carry out oil and gas exploration activities in Indonesia.

He detailed that the budget came from the Ministry of Energy and Mineral Resources (ESDM) amounting to Rp15 trillion and funds belonging to SKK Migas amounting to US$2 billion or equivalent to Rp31.8 trillion.

"The Minister of Energy and Mineral Resources has struggled to provide Rp15 trillion per year for exploration activities. We also have funds of around Rp2 billion US dollars and that can only be used for exploration activities. So Rp15 trillion per 2 billion dollars for exploration activities," said Djoko, Tuesday, December 3.

Meanwhile, Expert Advisor to the Head of SKK Migas Nanang Abdul Manaf said that later the Rp15 trillion fund from the Ministry of Energy and Mineral Resources would not be fully used for exploration activities. The funds will also be used for the construction of gas net infrastructure (jargas).

"Not all Rp 15 trillion is used for exploration, but is used for gas network infrastructure (jargas)," continued Nanang.

He continued, the USD 2 billion funds belonging to SKK Migas came from definite commitments or investments made by oil and gas companies or cooperation contract contractors (KKKS) to increase reserves and production in the first 5 years.

Nanang said the exact commitment fee paid by the contractor was either for exploration in their own area, or open area or open area.

"The US $ 2 billion is from the definite commitment of the extension of Mr. Djoko's tenure as Director General (Migas), making a policy for the extension, which provides a definite commitment but is made for exploration, whether it is allowed in the area or open area," said Nanang.