Add More, Now There Are 50 Oil And Gas Contracts Nominated

Oil refinery illustration (Photo: dock. SKK Migas)

JAKARTA - Director General of Oil and Gas Tutuka Ariadji revealed that currently there is 1 additional oil and gas contract termination. Thus the total number of contracts decided to be 50.

The contract is an accumulation of oil and gas contracts that have been terminated from 2020 to 2023.

"It has increased from 49 to 50 they have been nominated. But this is from 2020 to 2023. And the actual work contract is from 2008 to 2015," said Tutuka, quoted on Wednesday, October 18.

Tutuka explained that the reason for the termination of the contract was partly due to two things, namely first, there are several oil and gas working areas that have reached the exploration deadline so that the contract is automatically terminated. Second, is because it is voluntary. In this oil and gas industry, he said, there is always uncertainty even though operators have conducted geological, reservoir and geophysical studies.

"The problem is that there is uncertainty that causes the potential resources that will be used as reserves to be said to be very small or even non-existent, or maybe not economically so that the contractor does not continue," said Tutuka.

Tutuka said the Ministry of Energy and Mineral Resources had also conducted an in-depth study and added data on the 50 WK that had been terminated so that it could be auctioned again.

"Although not all of the 50 will be auctioned back. We certainly see everything that is still interesting, still has the potential to be developed," concluded Tutuka.

Previously, the Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto revealed that the government had terminated the contracts for 49 oil and gas exploration working areas (WK) in 2020-2023.

With the termination of the contract, all WKs return to state property.

After being nominated, the WK was returned to the state and then auctioned off so that other operators who had adequate technology and financial capacity could develop the potential in the WK.