TANGERANG - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that he would transfer the management of a number of oil and gas fields (oil and gas) to abandoned Cooperation Contractors (KKKS) who were really ready and able to manage.
"Currently there are 10 working areas that have POD (Plan of Development), but are stalled, not running. With a capacity of 10 regions, we can increase production by 31,300 barrels per day," Bahlil said at the Inauguration of the Opening of the Convention and Exhibition of the 49th Indonesian Petroleum Association (IPA Convex) 2025, at ICE BSD Tangerang, quoted Thursday, May 22.
That there are 10 fields that have been approved by the Plan of Development (POD) with a potential production of 51 million barrels of oil and 600 BCF of gas, but still neglected. With an investment of around USD 1.8 billion, this project can absorb up to 20,000 workers, encourage the growth of local supporting efforts, and improve the welfare of the community around the area of operation.
In accordance with Government Regulation Number 35 of 2004 concerning Upstream Oil and Gas Business Activities and Decree of the Minister of Energy and Mineral Resources Number 110 of 2024 concerning Guidelines for Returning Sections of Potential Working Areas that are not being worked on in the Context of Optimizing Oil and Gas Production, KKKS that has not been attempted, can be returned to the state and submitted to the KKKS who are ready to work on it.
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"For KKKS, we have submitted our authority, but it is still slow, sorry sir, by law, we must withdraw it to the state for five years, and we offer it to other KKKS who want to do it. This is indiscriminately. If the President allows it, not only private, we also do BUMN," said Bahlil.
The Ministry of Energy and Mineral Resources noted that there are 17 fields that are already POD and show progress, but production has the potential to be delayed. With total production reaching 306 million barrels of oil and 18,351 BCF gas, the Ministry of Energy and Mineral Resources will also facilitate acceleration so that these fields will immediately produce.
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