JAKARTA (TheInsiderStories) – The Ministry of Energy and Mineral Resources (MEMR) has signed four oil and gas working areas contract, which consist of three extension contracts and one exploration contract. The extension contract has a tenor of 20 years, while the exploration contract has a tenor of 30 years.
Deputy Minister of EMR Arcandra Tahar said on Thursday (11/30), that his party continued to accelerate the process of the contract finalization. So far, he continued, there were people who complained about government working too slowly, but now the regulator has pursued contractors to work faster.
“Our task is to complete 2023 termination block. Now it is in process and we promise to complete it as soon as possible,” Tahar stated.
By signing the four working area contracts, the participating interest owned by the contractors includes a 10 percent interest that will be offered to the regional government, except for coastal plains and Pekanbaru in Riau.
Total investment for the implementation of the Definite Work Commitment is US$183.15 million, while the total signature bonus of the four Production Sharing Contracts (PSC) is $14.45 million.
With the signing of the four contracts, the contractor is expected to continue to increase exploration and production activities in each working area.
The signed contracts are:
- Tarakan PSC with PT Medco E&P Tarakan and will be effective on Jan. 14, 2022. Estimated investment value from the implementation of the First Five Year Definite Work Commitment (DWC) is $35.50 million and a signature bonus worth $1.50 million.
- The Coastal Plains and Pekanbaru PSC with PT Bumi Siak Pusako will be effective on August 9, 2022. Estimated investment value from the implementation of the first five-year DWC is $130. 42 million and a signature bonus worth US$10.00 million.
- Tungkal PSC with Montd’or Oil Tungkal Contractor Ltd., and Fuel-X Tungkal Ltd., where Montd’or Oil acting as an operator. This contract will be effective on August 26, 2022. Estimated investment value from the implementation of the first five-year DWC is $13.24 million and a signature bonus of $2.45 million.
- Exploration Banyumas PSC with PT Contractor Minarak Banyumas Gas. The definite commitment for the first three years of $4.00 million and a signature bonus of $500,000.
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