Signing A Cooperation Contract, Oil And Gas Working Areas In Jambi Ready To Be Managed

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) through the Director General of Oil and Gas witnessed the signing of production sharing contracts for two Working Areas (WK) located in Sumatra.

The Director General of Oil and Gas, Tutuka Ariadji, said in his report that the WK West Kampar was offered by the Government through a Direct Bid Auction for 2022 for the September-October 2022 period and the winner had been announced on November 23, 2022.

While the Jabung Tengah CA is being offered by the government through a Direct Bid Auction for 2022 for the November-December 2022 period and the winner has been announced on December 28, 2022.

"The West Kampar Cooperation Contract is located on the shore of the provinces of Riau and North Sumatra with contractors PT APG West Kampar Indonesia and PT SPRL West Kampar where PT APG has been appointed as the contactor," said Tutuka in his report, Wednesday, January 25.

He detailed, PT APG and PT SPRL each hold Participating Interest (PI) rights of 80 percent and 20 percent, respectively.

He added, West Kampar is a CA with exploitation status where previous production from West Kampar CA came from Pendalian with an estimated resource of approximately 130 million barrels of oil with a definite commitment for the first 5 years for West Kampar CA were 3 GGRE Studies, 4 Development Wells.

Then, workover of 5 wells, reactivation of production facilities, 2 G&G studies, acquisition and 2D seismic processing of 250 km, acquisition, and processing of 50 km2 of 3D seismic, drilling of 2 exploration wells, drilling of 1 delineation well, 1 POD well for the development of a new structure.

"With a total investment of US$32,559,982 and a signature bonus of US$250,000," said Tutuka.

Meanwhile, the Jabung Tengah CA located offshore and onshore in Riau, Jambi, and Riau Islands will be managed by PT Cipta Niaga Gemilang as the operator and PT Raharja Energi Sentosa with PI rights of 70 percent and 30 percent, respectively.

It is estimated that the resources of the Central Jabung CA are 200 million barrels of oil with a firm commitment to the Jabung Tengah CA are 3 G&G studies, 2D 500 KM seismic acquisition and processing, drilling of two exploration wells with a total investment of US$16,550,000 and a signature bonus of US$150,000.

"The two production sharing contracts are contracts with a cost recovery scheme with contract terms for WK West Kampar for 20 years and Jabung Tengah for 30 years," continued Tutuka.

At the end of his report, he added, prior to the signing of the KKS which took place today, all contractors had completed administrative and financial obligations, namely payment of signature bonuses and submitting performance guarantees in accordance with applicable regulations.

"We hope that through the activities at this WK, oil and gas reserves and production can increase in a sustainable manner and support the production targets that have been set. Hopefully, this PSC will prove that the upstream oil and gas industry in Indonesia is still quite attractive," concluded Tutuka.