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Jakarta Post

‘Fastest extension’: Contracts signed for West Ganal and Pangkah oil and gas blocks

  • Norman Harsono
    Norman Harsono

    The Jakarta Post

Jakarta   /   Mon, October 21, 2019   /  04:03 pm
The Jakarta Post Image
Oil exploration at Pangkah Block in Gresik, East Java, in this 2018 file photo. The block is operated by Saka Energi Indonesia, a subsidiary of state gas company PGN.(Antara/Moch Asim)

The Energy and Mineral Resources Ministry announced on Friday the signing of contracts with several companies to exploit the offshore West Ganal Block in the Makassar strait and the offshore Pangkah Block in East Java. The ministry said in a statement that the contracts, both of which are based on gross split schemes, secured a total of US$36.1 million in signature bonuses – a form of non-tax state revenue – and $223.25 million in block development funds. “The contracting companies have paid the bonuses,” the ministry's upstream oil and gas director Mustafid Gunawan told reporters at the contact signing ceremony in Jakarta. He said West Ganal was contracted for 30 years to a consortium of three oil companies comprised of Italy’s Eni (40 percent share), Indonesia’s Pertamina (30 percent) and the UK’s Neptune Energy (30 percent). Eni a...