Indonesia’s energy ministry extends contracts of two PSCs

JAKARTA (RambuEnergy.com) – Indonesia’s Energy and Mineral Resources Ministry has extended two production sharing contracts (PSC) based on gross split scheme, namely Sengkang dan East Sepinggan.

The Sengkang PSC contract is extended for another 20 years, to be effective from Oct. 24, 2022. The value of investment commitment for the next 5 years is set at US$88 million, with a signature bonus paid to the government amounted to US$12 million.

The PSC is fully-owned by the Energy Equity Epic (Sengkang) Pty Ltd (100%).

The Deputy Minister for Energy and Mineral Resources Arcandra Tahar said Tuesday (Dec. 11) the gross split scheme is expected to provide certainty and efficiency in the operation of the block.

Meanwhile, East Sepingan PSC is 85% owned by Eni East Sepingan Ltd and PT Pertamina Hulu Energi East Sepingan 15%. Eni East Sepingan acts as the operator of the block.

Three PSCs Extended
In late November, the energy ministry also signed three PSC contracts extension and 1 exploration working area contract.

The three PSCs, based on gross split scheme, were extended for 20 years, while one exploration area’s contract is awarded for 30 years.

The energy ministry estimated that PSCs are expected to invest US$183.15 million or around Rp2.65 trillion, with investment bonus is set at US$14.45 million. (US$1=Rp14,450).

The three PSCs whose contracts were extended are as follows:

– PSC Tarakan operated by PT Medco E&P Tarakan, effective from Jan. 14, 2022. The investment value in the first five years is set at US$35.5 million with signature bonus set at US$1.5 million.
– PSC Coastal Plains and Pekanbaru operated by PT Bumi Siak Pusako, effective from Aug. 9, 2022. The investment value in the first five years is set at US$130.42 million with signature bonus set at US$10 million.

– PSC Tungkal owned by Montd’or Oil Tungkal, Ltd. and Fuel-X Tungkal Ltd, in which Montd’or Oil Tungkal, Ltd. acting as the operator. The PSC contract will be effective from Aug. 26, 2022, with an investment value in the first five years is set at US$13.24 million and signature bonus at US$2.45 million.

– Banyumas Working Area (Exploration) owned by PT Minarak Banyumas Gas, with investment commitment in the first three years set at US$4 million and signature bonus at US$500,000. (*)

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