Pertamina Acquires 35 Percent Shares Of Blok Masela, Observer: The Right Time To Trust Oil And Gas Block Management In Children Of The Nation

Energy observer Hanifa Sutrisna assessed that the takeover of 35 percent of the Masela Block participating interest by Pertamina was the right step to entrust the management of giant oil and gas (oil and gas) blocks to the nation's children.

"This is the right time to entrust the management of oil and gas (giant) blocks to the nation's children. We must be optimistic," said energy observer Hanifa Sutrisna, quoted from Antara, Sunday, July 23.

The reason is, Pertamina Hulu Energi (PHE) performance, as Pertamina's Upstream Subholding, which is trusted to manage the Masela Block, is indeed increasing.

Hanifa added that taking over 35 percent of the eternal field in the Masela Block from Shell will provide a domino effect on the economy and the development of human resources in local areas play an important role in supporting national energy security.

The potential for an eternal field in the Masela Block is indeed extraordinary, namely with the largest gas reserves in Indonesia, which is projected to produce 9.5 MMTPA LNG and 150 MMSCFD of piped gas, which is the largest gas production in the country.

In addition, the eternal field will also produce 35,000 bbl/day condensates.

Citing data from the University of Indonesia's 2016 Economic & Community Research Institute (LPEM) and the Ministry of Manpower's Balitbang in 2017, he said, it is projected that the economic benefits of the eternal field can increase Gross Domestic Product (GDP) by 153 billion US dollars and increase household income in the construction stage by 3 billion US dollars and the production stage by 30 billion US dollars.

Seeing this condition, according to Hanifa, the state must give full support to Pertamina.

In fact, not only related to the Masela Block, but also other oil and gas blocks.

"This support can be in the form of incentives in terms of bringing in all technology, equipment, and other supporters, or also through obtaining tax relaxation," as can foreign smelters who receive tax relaxation, for example, "he said.

Previously, Minister of State-Owned Enterprises (BUMN) Erick Thohir confirmed that PT Pertamina (Persero) would immediately sign a Sales and Purchase Agreement (SPA) or a 35 percent Sale and Purchase Agreement for Shell participation rights in the Masela Block.

"Hopefully (the SPA next week), we'll wait. So, we'll wait, if that happens it's part of a corporate action that we really hope there will be sustainability in Pertamina," said the minister when met at the Ministry of SOEs, Friday, July 21.