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Indonesia energy ministry to sign 8 PSC contracts extension

JAKARTA (RambuEnergy.com) – The Indonesian Energy and Mineral Resources Ministry is scheduled to sign contracts of eight oil and gas production sharing contracts (PSC) today (April 21), whose existing contracts will expire soon.

Director General for Oil and Gas at the energy ministry has said that the PSCs will be developed and operated by the country’s state-owned energy company PT Pertamina. It will be then up to Pertamina to determine, whether the company ties up with the existing operator or find the ones.

What is certain, he said, the new contracts will be based on PSC gross split scheme, instead of cost recovery-based PSC contracts.

He said the terms and conditions of the eight working areas (WKs) have been signed by the Energy and Mineral Resources MInister Ignasius Jonan.

The eight Working Areas are as follows:

1. WK Tuban:

  • PSC Contractors: PT Pertamina Hulu Energy Tuban East Java and Petrochina International Java Ltd.
  • Investment Commitment in first three years: US$ 42.25 million, consisting of GGRP exploration, GGRP exploitation study, well service, facility maintenance, 3D seismic, drilling for exploration and exploitation.
  • Signature bonus: US$ 5 million.

2. WK Ogan Komering

  • PSC Contractors: PT Pertamina Hulu Energi Ogan Komering and Jadestone Energy (Ogan Komering Ltd).
  • Investment Commitment in first three years: US$ 23.3 million, comprised of GGRP exploration study, GGRP exploitation study, re-entry and perforation, EOR study, well service, facility maintenance, infill well drilling, appraisal well and drilling for exploration.
  • Signature bonus: US$ 5 million.

3. WK Sanga-Sanga

  • PSC Contractor: PT Pertamina Hulu Sanga-Sanga, PT Karunia Utama Perdana and OPICOIL HOUSTON Inc.
  • Investment Commitment in first three years: US$ 237 million, comprises of G&G, advance 3D seismic reprocessing, drilling activities for exploration and exploitation
  • Signature bonus: US$ 10 million.

4. WK Southeast Sumatra

  • PSC Contractor: PT Pertamina Hulu Energi Offshore Southeast Sumatera and GHJ SES Indonesia.
  • Investment Commitment in first three years: US$ 130 million, comprises of GGRP/flow unit study, EOR study, water injection conversion, workover, seismic 3 D/4D, infill drilling, field reactivation and EOR pilot project.
  • Signature Bonus:  US$ 10 million.

5. WK North Sumatra Offshore

  • PSC Contractor PT Pertamina Hulu Energy NSO
  • Investment Commitment in first three years: US$ 18.5 million, comprises of GGRP exploration study, 2D seismik, GGRP study and exploration drilling.
  • Signature bonus: US$ 1.5 million.

6. WK East Kalimantan dan Attaka

  • PSC Contractor: PT Pertamina Hulu Kalimantan Timur.
  • Investment Commitment in first three years: US$ 79.3 million, comprises of exploration study, exploitation drilling, workover well services, GGRP study and exploration drilling.
  • Signature bonus: US$ 1 million.

7. WK Tengah (WK Mahakam amendment and merger with WK Tengah)

  • PSC Contractor: PT Pertamina Hulu Mahakam
  • Investment Commitment in first three years: US$ 26.1 million, comprises of GGR regional study, reprocessing 3D seismic, additional GGR study and exploration drilling.
  • Signature bonus: US$ 1 million.

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