Jakarta, CNBC Indonesia - Two upstream oil and gas (oil and gas) contracts, namely for the Working Area (WK) or Amanah Block and Melati Block, were officially signed on Monday (14/10/2024).

The two oil and gas block contracts have an initial investment value in the form of a Firm Commitment from the Cooperation Contract Contractor (KKKS) reaching US$ 15.85 million or around Rp. 246.5 billion (assuming an exchange rate of Rp. 15,555 per US$).

The signing of the Cooperation Contract (PSC) was carried out by the Head of SKK Migas Dwi Soetjipto and each KKKS at the Indonesia Exploration Forum 2024 in Surabaya, East Java, Monday (14/10/2024). This event was also witnessed by the Acting Director General of Oil and Gas, Ministry of Energy and Mineral Resources, Dadan Kusdiana.

"This signing adds to the government's achievements in getting investors in upstream oil and gas business activities to encourage oil and gas exploration activities in Indonesia," said Dadan.

Dadan said that the investment value of the Definite Commitment in WK Amanah was US$ 3,150,000 and WK Melati was worth US$ 12,700,000, so that the two WKs received a total definite commitment of up to US$ 15,850,000, with signature bonuses for each. US$ 300,000 and US$ 200,000 respectively.

Amanah and Melati WKs are the results of the 2024 Phase I Oil and Gas WK Auction which was offered through a Direct Bidding Auction mechanism.

The operator or manager of WK Amanah is PT Medco Energi Amanah (Operator), and other participating rights holders are PT Sele Raya Sejati and KUFPEC Indonesia (Amanah) B.V.

Meanwhile, the manager of the Melati WK is PT Pertamina Hulu Energi Sulawesi Melati (Operator), and other participating rights holders are SIEI Melati Limited and KUFPEC Indonesia (Amanah) B.V.

From the signing of this Cooperation Contract, WK Amanah took the form of a geological and geophysical (G&G) study activity as well as acquisition and processing of 50 km2 of 3D seismic data. Meanwhile, for WK Melati, the definite commitment is in the form of two G&G studies, acquisition and processing of 200 km2 of 3D seismic data, as well as acquisition and processing of 250 km2 of 2D seismic data.

"This shows that the upstream oil and gas industry in Indonesia still has great opportunities, and remains attractive for investment. Improvements in regulations carried out by the Government also support a better investment climate for investors, including tax facilities, incentives or terms and conditions in offers," added Dadan .

Dadan hopes that the signing of 2 Oil and Gas Cooperation Contracts with the Cost Recovery scheme will have a positive impact on the oil and gas exploration climate in Indonesia. Also, adding Cooperation Contracts from 2020 to 2024 to a total of 23 New Cooperation Contracts.

(SOURCE)