JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif accompanied by the Director General of Oil and Gas Tutuka Ariadji witnessed the signing of Production Sharing Contracts for 3 Working Areas (WK) from the 2021 Phase II Offering between the Special Task Force for Upstream Oil Business Activities and Natural Gas (SKK Migas) with Cooperation Contract Contractors (KKKS) in Jakarta, Monday 20 June.
The total investment commitment for this signing is US$12.14 million with a signature bonus of US$700,000.
The three signed CAs are Exploration Working Areas, namely WK Agung I, WK Agung II and WK North Ketapang which were offered by the Government through the 2021 Direct Bidding Phase II for the period November 2021-January 2022 and the winner was announced on March 18, 2022.
"After going through a series of evaluation and consideration processes from both the WK and SKK Migas Bidding Teams, the Government cq the Ministry of Energy and Mineral Resources has made a decision on the results of the 2021 Oil and Gas Working Areas Offering Phase II, and today we have witnessed the signing of the Contract for The results of the three working areas," said Minister Arifin in his remarks, Monday, June 20.
Arifin hopes that the signing of this contract will encourage the investment climate for oil and gas management in Indonesia.
Meanwhile, Director General of Oil and Gas Tutuka Ariadji said that the Production Sharing Contract for Exploration CA has a term of 30 years.
"Before signing the contract, the three KKKS have completed their financial obligations, namely paying signature bonuses and submitting implementation guarantees in accordance with applicable regulations," he said.
Meanwhile, the Head of SKK Migas Dwi Sutjipto said this signing indicates that investment in Indonesia is still attractive.
"Because large international companies are entering, this indicates that Indonesia is still attractive to foreign investors. Of course we hope that for other WKs we will be more active in collaborating with the Ministry of Energy and Mineral Resources to offer offers, roadshows, and so on, so that future investment will increase more quickly again," he said.
BP Regional President Asia Pacific Nader Zaki expressed his gratitude for the government's support and partnership.
"Our presence in Indonesia now extends from eastern Indonesia, precisely in the province of West Papua, with the Tangguh LNG project which is the largest gas producing field in Indonesia and is also developing the CCUS project; to the western part of Indonesia through a partnership in the Andaman II block in Aceh," said Nader
"Now, we have Agung blocks I and II in East Java. We would like to thank the Indonesian government, especially the Ministry of Energy and Mineral Resources and SKK oil and gas for the support and strategic partnerships that continue to be given to us," continued Nader.
Petronas Vice President Exploration, Redhani Abdul Rahman said, this signing is progress for Petronas to participate in meeting energy needs in Indonesia.
"This signing is a tremendous progress for us to continue to develop our main business to meet energy needs in Indonesia. We are always committed to supporting future growth and providing positive value to society by maximizing the potential of our assets in East Java," he said. .
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