Govt Targets Minimum 15 Oil and Gas Contracts Per Year

 
Kartini L Makmur, Yanuar Pribadhie
 
The Government is now accelerating its efforts to improve national production of oil and gas. Led by the Ministry of Energy and Mineral Resources (ESDM), the target is to sign 15 cooperation contracts every year.
 
Jero Wacik, the Minister of Energy and Mineral Resources, stated that this target reflects four previously issued instructions on energy (catur dharma energi). The first instruction was that the ESDM increase domestic oil and gas production.
 
“Executing 15 new cooperation contracts will make this possible, and this is a fairly realistic target,” says the Minister.
 
While he admits that the benefits from oil and gas exploration may only appear sometime in the next ten years, Jero hopes that the contracting parties will commence their exploration without delay.
 
“Commence your work tomorrow, do not delay it. People are waiting for the results,” implored the Minister.
 
In line with the Minister’s expectations, the Directorate General of Oil and Gas at ESDM, has announced the results of the second phase of the regular auction on oil and gas working fields, as well as the direct offers for conventional oil and gas working fields.
 
Unfortunately, this year, the Government cannot accomplish the expected target. Only seven new cooperation contracts were executed in the beginning of 2014.
 
Those contracts are development of Bengara II Block by PT Baradinamika Citra Lestari, Palmerah Baru Block by a consortium between Bukit Energi Palmerah Baru Pte. Ltd and PT Surya Selaras Sejahtera, Sakti Block by a consortium between Krisenergy (Sakti) BV and PT Golden Heaven Jaya, North East Madura IV Block by Golden Code Commercial Ltd, Anugrah Block by Husky Anugrah Limited, East Bontang Block by PT Innovare Gas, and Alas Dara Kemuning Block by Pertamina EP Capu ADK.
 
Johanes Widjonarko, person-in-charge of the Head of the Special Task Force on Upstream Oil and Gas (SKK Migas), explained that SKK Migas essentially supports the targets set by the Government. He added that his institution continues to consult with and give recommendations to the Ministry on the working fields to be auctioned.
 
“After the auction, SKK Migas will call upon the winning bidder to provide them with a Work Program and Budget (WP&B). This instrument will be a basis for SKK Migas to supervise the commitment of the contractors in developing their blocks,” said Mr. Widjonarko.