This oil and gas treasure is ready to be drilled, a large investment comes in RI IDR 280 T.

Jakarta –

Development Plan or (Development Plan/ POD) The first field, Geng North Field, Ganal North Working Area (WK), and Gehem Field, Ganal WK and Rapak WK (North Hub Development Project, Makassar Strait) were approved by the Ministry of Energy and Mineral Resources. With this agreement, a jumbo investment will go into Indonesia, which is about IDR 280 trillion.

The discovery of oil and natural gas resources (oil and gas) in the North Geng Field, North Ganal WK in East Kalimantan caused a stir as it was included in the top three global exploration discoveries of 2023 .

The POD agreement is contained in the Letter of the Minister of Energy and Mineral Resources, Bahlil Lahadalia, Number: T-351/MG.04/MEM.M/2024 in response to the letter from the CEO of SKK Migas number SRT-0318 /SKKIA0000/2024/S1 regarding North Hub POD Development Proposal Makassar Strait Project North Ganal Work Area, Ganal Work Area and Rapak Work Area.

“As a National Strategic Project (PSN) for Upstream Oil and Gas, the agreement of the First POD Field of Geng North WK North Ganal and Gehem Field WK Ganal and WK Rapak is the best gift at the 79th Anniversary celebration the Republic. from Indonesia,” SKK Migas Program and Communication Department Head Hudi D Suryodipuro said in a written statement, Friday (23/8/2024) yesterday.

“Issuing the POD permit for the PSN Upstream Oil and Gas project was relatively quick as it was discovered great find Geng North in October 2023, then within 10 months the POD will be approved,” he said.

Hudi said that with the approval of this POD, there will be a large investment coming into Indonesia with estimated investment costs outside sunk cost amounting to US $ 11.847 billion and operating costs including ASR, VAT and PBB costs of US $ 5.643 billion with a total investment of US $ 17.490 billion or Rp. 280 trillion (exchange rate Rp. 16,000). As for the whole sunk cost North Ganal WK and Rapak WK are located at US$ 859 million.

“An investment of Rp. 280 trillion is certainly very large because it is 2.5 times more than the investment in the Jakarta Bandung high-speed train which is about Rp. 112 trillion,” he said.

It is estimated that the total income (gross income) will reach approximately US$ 39.457 billion or equal to Rp. From this income, the allocation of the government’s share is US$ 12.993 billion or equal to IDR 208 trillion or about 31.5% of gross income. The contractor’s share was US$ 8.128 billion or about 19.7% of gross income, and expenses cost recovery amounting to US $ 18.336 billion or about 44.4%.

“According to the agreement in the POD, the minimum state revenue will be around IDR 208 trillion, SKK Migas will manage and control as much as possible. cost recovery to make it more efficient, so that the state’s income can be increased even more. “This will certainly support development programs and support efforts to improve people’s welfare,” said Hudi.

(acd/ara)