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Jakarta Post

Energy Equity’s contract in Sengkang block extended to 2042

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Wed, December 5, 2018   /   11:00 am
Energy Equity’s contract in Sengkang block extended to 2042 Energy and Mineral Resources Deputy Minister Arcandra Tahar (JP/Dhoni Setiawan)

The government on Tuesday extended the contract of Jakarta-based Energy Equity Epic Pty Ltd in Sengkang Block, whose contract was to end in 2022 but is to now last another 20 years.

Other oil and gas blocks, where contracts were also to end in 2022, got their extensions in October.

With the extension, the oil and gas contractor is to operate the block until 2042 under a gross split scheme.

Deputy Energy and Mineral Resources Minister Arcandra Tahar said in a press briefing on Tuesday that the investment for exploration was worth US$88 million, while the signature bonus was $12 million.

“The company is committed to exploring in its existing working area and also in other areas like the Karaeng block, which is located both offshore and onshore in South Sulawesi,” he said, adding that the government would sign the production sharing contract next Monday.

The block’s gas production was 35.83 million standard cubic feet per day (mmscfd), according to data from the Upstream Oil and Gas Regulatory Task Force (SKK Migas) in April 2018. The date does not reveal information about oil production in the block. (bbn)