The Ministry of Energy and Mineral Resources Signs a Production Sharing Contract of 30 Million US Dollars in 2 Aceh Oil and Gas Blocks

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources has signed a cooperation contract (KKS) for the Offshore North West Aceh (Meulaboh) and Offshore South West Aceh (Singkil) Working Areas (WK).

The Director General of Oil and Gas (Migas) of the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said in his report that the signing of this contract was the result of a direct bidding auction for phase I of 2022 for the July-September 2022 period.

He detailed, Offshore North West Aceh (Meulaboh) which is located off the coast of Aceh will be managed by the contractor ONWA Pte Ltd. with K=firm commitment of G&G exploration, acquisition of 500 km2 of 3D seismic data and one exploration well.

"The total investment is USD 15 million with a signature bonus of USD 50.000," he said in his report before the Minister of Energy and Mineral Resources, Thursday, January 5.

Meanwhile, the production sharing contract for the Offshore South West Aceh (Singkil) work area is located in Lpeas Laut Aceh with contractor OSWA Pte Ltd with a definite commitment to exploration G&G, acquisition of 500 km2 of 3D seismic data and one exploration well with a total investment of USD 15 million and bonuses. signature of 50.000 US dollars.

"The two production sharing contracts for cost recovery are exploration contracts with a term of 30 years with a production sharing split of 60:40 for oil and 55:45 for gas," continued Tutuka.

As for the total investment, the firm commitment for exploration from the signing of the production sharing contracts for the WK is worth USD 30 million with a signature bonus of USD 100.000.

"Prior to today's contract signing, the contractor had completed all administrative and financial obligations, giving a signature bonus and submitting implementation guarantees in accordance with applicable regulations," concluded Tutuka.