Tuesday, 12 November 2019 | 22:41 WIB

Signing 7 Contracts, Pertamina Prepares Investment of IDR7.45 Tln

Minister of Energy and Mineral Resources (EMR) Ignasius Jonan.

JAKARTA, NNC - Minister of Energy and Mineral Resources (EMR) Ignasius Jonan officially granted the approval of seven working area contracts originating from eight working areas whose cooperation contract will end in 2018.

Based on the official statement of the Ministry of Energy and Mineral Resources cited on Sunday (4/22/2018), all work area contracts are granted to the affiliated companies of PT Pertamina (Persero).

The seven contracts consist of six production sharing contracts of the working area transfer management under contract scheme for gross split with contractor and also operator which is Pertamina’s affiliate with 100 percent participating interest including 10 percent participating interest to be offered to Regionally Owned Enterprises (BUMD).

The working area consists of the Tuban Work Area; Ogan Komering Work Area; Sanga Sanga Work Area; North Sumatra Offshore Work Area; Working Area of Southeast Sumatra; and East Kalimantan & Attaka Working Areas.

Next is an amendment to production sharing contract of the Mahakam, i.e., Contractor’s Cooperation Contract or KKKS, PT Pertamina Hulu Mahakam, which is made among others because of the inclusion of Ex-Central work area into the working area of Mahakam after October 4, 2018.

Total signature bonus from seven contracts worth USD33.5 million or equivalent to IDR448.9 billion. Meanwhile the estimated total investment value of the implementation of the first-three year commitment activities is USD556.45 million or equivalent to IDR7.45 trillion.

The government advised Pertamina that with the signing of all these contracts, oil and gas production must be increased.