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Energy ministry inks cost-recovery PSCs for two blocks
The Upstream Oil and Gas Regulatory Task Force (SKK Migas) has signed production-sharing contracts (PSC) worth US$49.1 million for two oil and gas blocks under the cost-recovery scheme.
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The Oyong oil and gas rig in the Sampang Block, located in the Madura Strait off the coast of East Java, is pictured in this undated photo. (SKK Migas/SKK Migas)
T
he Upstream Oil and Gas Regulatory Task Force (SKK Migas) has signed production-sharing contracts (PSC) worth US$49.1 million for operating two oil and gas blocks under the cost-recovery scheme.
So like this: One is a 20-year PSC for the onshore West Kampar Block in Riau and North Sumatra, the other a 30-year PSC for the onshore and offshore Jabung Tengah Block in Jambi, Riau and Riau Islands.
“The two working areas have the potential to contribute to industry development in the Sumatra area. We hope the West Kampar Block can also produce oil to ramp up national oil production,” SKK Migas head Dwi Soetjipto said during the signing ceremony broadcast live on Wednesday.
The deals concluded on Wednesday give the government a total signing bonus of $400,000.
The ceremony was witnessed by the Energy and Mineral Resources Ministry’s oil and gas director general, Tutuka Ariadji.
Read also: Conrad Asia Energy wins two oil and gas blocks in Aceh, pledges $30m investment
The West Kampar Block, holding an estimated 130 million barrels of oil (mmbo), will be operated by a consortium of PT Aserra Petrolindo Gemilang and PT Sarana Pembangunan Riau Langgak (SPRL).
