President Joko Widodo injects capital Rp2.1 trillion (US$141.89 million) to PT Pertamina to improves the capital structure of state-owned energy producer - Photo by the Company
JAKARTA (TheInsiderStories)PT Pertamina, an Indonesia’ largest energy firm officially acquired Southeast Sumatra (SES) through its unit PT Pertamina Hulu Energi (PHE), said the company on Thursday (07/09).
The state-owned firm has officially seize the working area of Southeast Sumatra (SES) of the old operator CNOOC SES Ltd. to 100 percent. SES will be operated by the Offshore Southeast Sumatra PHE as a new operator.
According to Upstream Director of Pertamina Samsu Darmawan explained, SES is one of the largest oil and natural gas in Indonesia. Until August 2018, the block carrying oil and gas production amounted to 31,120 barrels per day (bpd) and 137.5 million standard cubic feet per day (MMSCFD).
“SES has a strategic value in the oil and gas industry in the country in support of the national production target to achieve national energy security,” said Darmawan in a written statement on Thursday (06/09).
So far, SES field gas production is used for power plants owned by the state-owned electricity producer PT Perusahaan Listrik Negara in Cilegon, Banten. After the acquisition, the entire production will be fully processed for the refineries of Pertamina to meet the domestic needs.
Meanwhile, Director of PHE Huddie Morrow said, SES is one of the pioneers in the production sharing contract (PSC) in Indonesia. The PSC signed on Sept. 6,1968.
In the last four years, production of SES recorded stable and tended to decrease in the range of 31,000 bpd. It’s a challenge for PHE to be able to operate the block is more efficient.
As part of the signing of the PSC – Gross Splits, the contractors get a share split 68.5 percent for oil production and 73.5 percent of natural gas production. The split section has considered base on the Regulation Minister Number 52 in 2017.
On April 20, 2018, Pertamina has been getting government assignment to manage eight working areas who is out of contract, one of them SES. its unit are expected to produce more effectively and efficiently.