Wedoany.com Report-Oct 15, The Upstream Oil and Gas Regulatory Task Force (SKK Migas) has signed a Production Sharing Contract (PSC) for two working areas in Sumatra and Sulawesi under a Cost Recovery scheme.
The deal was made on the sidelines of the Indonesia Exploration Forum (IEF) held at The Westin Hotel in Surabaya, East Java, on Monday, October 14, 2024.
Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), Dadan Kusdiana, said the government would continue to encourage investment in the upstream oil and gas sector.
“We have both witnessed the signing of the cooperation contract for the Amanah and Melati working areas which are the results of the first phase of the oil and gas block auction in 2024,” Dadan said.
“The government continues to prepare new oil and gas blocks, with more than 60 oil and gas blocks having been prepared for the next five years,” he added.
Head of SKK Migas Dwi Soejipto said that Indonesia continues to encourage massive exploration to obtain oil and gas reserves.
“The potential for developing the oil and gas Industry and the opportunity to discover reserves in new blocks is still very large along with the increasing interest of investors in the upstream oil and gas industry. To support sustainable oil and gas production and efforts to achieve the targets set in the long-term plan (LTP), namely oil production of 1 million barrels per day (BOPD) and gas of 12 billion cubic feet per day (BSCFD), new reserve discoveries must continue to be obtained,” he said.
“The signing of the Amanah WK and Melati working areas shows that the prospect of oil and gas reserves discovery in Indonesia and at the same time shows the government’s success in continuously building the competitiveness of the oil and gas industry amidst the increasingly tight competition with other countries and the ongoing energy transition,” he added.
The Amanah block is located in South Sumatra with a working area of 1,753.15 Km2 which will be operated by PT Medco Energi Amanah with a Total Firm Commitment Value of Rp50.4 billion (US$3,150,000) through a three-year commitment in the form of 3d Seismic Geological and Geophysical Study activities for an area of 50 Km2.
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