JAKARTA (TheInsiderStories) – Minister for Energy and Mineral Resources Sudirman Said on Tuesday witnessed two production sharing contracts on two oil and gas blocks.
The first contract was signed by the Special Task Force for Upstream Oil and Gas (SKK Migas) and state owned energy company PT Pertamina on Mahakam Working Area (WK). The second PSC contract was signed by SKK Migas and Pertamina on Offhsore North West Java (ONWJ) production sharing contract (PSC).
The Mahakam WK (Mahakam Block) was signed by Director of PT Pertamina Hulu Mahakam, a subsidiary of Pertamina, Ida Yusmiati and the second PSC was signed by PT Pertamina Hulu Energy ONWJ President Director Beni J. Ibradi.
The government was represented by the Head of SKK Migas Amien Sunaryadi in signing the PSCs. The signing agreement was also witnessed by Director General for Oil and Gas I. G. N. Wiratmaja Puja and President Director of Pertamina Dwi Soetjipto.
Currently, Mahakam Block is operated by Total E&P Indonesie in partnership with Inpex Corp of Japan (non operator). The existing contract will expire at end of 2017.
Pertamina will become the new operator of Mahakam PSC from Jan. 1, 2018.
Under the agreed new scheme, Pertamina will hold 60 percent participating interest in Mahakam Block, post 2017, local governments in East Kalimantan 10 percent and 30 percent to be shared equally by Total E&P Indonesie and Inpex Corp.
The new PSC contract will start from January 1, 2018 until Dec. 31, 2038.
Meanwhile, the ONWJ WK will expire on January 18, 2017. The new contract will allow PHE ONWJ the right to develop the block until 2037.
Currently, PHE ONWJ holds 58.28 percent interest in ONWJ WK, Energi Mega Persada OWNJ Ltd 36.72 percent, KUFPEC Indonesia (ONWJ), B.V. 5 percent.
Under the new contract scheme, PHE ONWJ will hold 73.5 percent interest, Energi Mega Persada ONWJ Ltd 24 percent and KUFPEC (ONWJ) B.V. 2.5 percent. (*)