Officially Managed By Contractors, These Three Working Areas Have Total Investment Of 22.7 Million US Dollars

JAKARTA - SKK Migas signed a Production Sharing Contract for the East Natuna, Sangkar, and Peri Mahakam Working Areas (WK) at the Heritage Building of the Ministry of Energy and Mineral Resources, Tuesday, 30 May.

The total investment for the three CAs is US$22.7 million and a signature bonus of US$600,000.

The signing of the production sharing contract for the East Natuna CA and two CAs resulting from the 2022 Phase II Direct Bid auction between the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) and the Cooperation Contract Contractor (KKKS) was witnessed by the Director General of Oil and Gas Tutuka Ariadji.

Tutuka said the East Natuna CA was a CA that was proposed to be managed directly by PT Pertamina Hulu Energi, which is a subsidiary of PT Pertamina (Persero).

"Meanwhile, the Sangkar and Peri Mahakam CAs (Exploration CAs) are areas that were auctioned off by the Government through the Phase II Year 2022 Direct Bid Auction for the November 2022-January 2023 period and the winners have been announced on February 22, 2023," he said in his remarks, Tuesday 30 May.

Production Sharing Contracts for Exploration CAs for the three CAs have a term of 30 years.

"All KKKS have completed their financial obligations, namely the payment of signature bonuses and submitted implementation guarantees in accordance with the applicable regulations before signing the cooperation contract," said Tutuka.

On this occasion, Tutuka asked PSC Contractors to maintain their commitment and play an active role in supporting national energy needs in the future.

Tutuka emphasized the Government's commitment to support national oil and gas development.

"The Indonesian government will continue to strive to support the development of upstream oil and gas activities by continuing to make improvements in the oil and gas management system so as to increase investor confidence in investing," he said.

With the addition of the signing of these three new contracts, the government hopes to be one proof for investors that Indonesia's upstream oil and gas industry still has great opportunities to develop, and has high attractiveness.

"Hopefully the signing of the three cooperation contracts today will increase opportunities for the discovery of new oil and gas fields and exploration activities in the future," concluded Tutuka.

Prior to the signing of this contract, in 2023 5 cooperation contracts as a result of the auction have also been signed, namely:

• Offshore North West Aceh Cooperation Contract
• South West Aceh Offshore Cooperation Contract
• Central Jabung Working Area Cooperation Contract
• West Kampar Working Area Cooperation Contract
• Whale Work Area Cooperation Contract

Currently there are also several CAs that are still in the process of evaluating the Direct Bid Bidding Phase I of 2023, namely Akia, Beluga and Bengara I CAs which are expected to make a positive contribution to upstream oil and gas activities in Indonesia.