TEMPO.CO, Jakarta - Special Unit for Upstream Oil and Natural Gas Business Activities (SKK Migas) has approved 18 proposals for the oil and gas field development periods January-April 2016. The development is expected to be able to produce oil up to 45 million barrels and 271 billion cubic feet (BCF) of natural gas.
“The investment is $1.4 billion or around Rp 19.5 trillion,” SKK Migas spokesman Taslim Z. Yunus said Sunday.
The proposal approved is the plan of development (POD) and plan of further development (POFD). Its manufacturing schedule varies between the year 2016 and 2020, according to the document.
However, Taslim noted that most of the project locations are still located in western Indonesia, which is 16 plans. Only two are located in eastern Indonesia.
SKK Migas also reported that the government split is above 60 percent and the amount of money potential of going into the state treasury is estimated to be a staggering $3 billion or around Rp 39.3 trillion.
In order to optimize state revenue, SKK Migas has asked contractors to be efficient, especially when world oil prices continue to slump.
One of the purposes to be achieved by SKK Migas and contractor is the decentralization of bonded logistic areas, which has been concentrated in Batam, Riau Island. SKK Migas is amid preparing three alternative logistic headquarters including in Penajam, East Kalimantan; Tanjung Batu, South Kalimantan; and Sorong, West Papua. Those three facilities have yet been used by oil and gas companies optimally.
ROBBY IRFANI
