Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif signed the Production Sharing Contract (PSC) of Ketapang Working Area (WK) which is an extended Working Area (WK Production) and witnessed the signing of the Bobara WK Cooperation Contract which is the result of the auction of Working Area phase III in 2023. The signing event was held at the opening of the three-day Indonesia Petroleum Association Convention and Exhibition (IPA Convex) at BSD City on Tuesday, May 14, 2024.

"The Bobara Working Area PSC is an Exploration Working Area with a period of 30 years, while for the Ketapang Working Area, the contract period is 20 years considering that the WK is a Production WK," Dadan Kusdiana, Secretary General of the ESDM Ministry, said.

The Bobara WK Production Sharing Contract is an Exploration Block with a period of 30 years signed by the Minister of Energy and Mineral Resources, Head of Upstream Oil and Gas Regulatory Task Force (SKK Migas) and the Cooperation Contractor (KKKS). Meanwhile, the Ketapang WK is a Production Working Area with a 20-year contract period which was signed by the Head of SKK Migas and contractors and witnessed by the ESDM Minister. Both cooperation contracts use a Cost Recovery scheme.

The total firm commitment investment from the signing of this working area is US$ 96,920,000 with a total signing bonus for the two working areas of US$1,050,000, with details of the cooperation contract as follows:

1. Bobara WK with contractor: Petronas E&P Bobara Sdn. Bhd
   Progress of this working area is 3 G&G studies and 2,000 Km2 of High Resolution 3D Seismic; with a total investment of US$16,920,000
   Signing Bonus: US$50,000
2. Ketapang WK with contractors : PC Ketapang II Ltd, Petronas Carigali (Ketapang) Ltd, PT Saka Ketapang Perdana, and PT Petrogas Jatim Sampang Energi
   Progress : Drilling 2 Exploration Wells with total investment of US$80,000,000
   Signing Bonus: US$1,000,000

With the signing of the Cooperation Contract, the government hopes that the Cooperation Contractors (KKKS) can maintain the sustainability of their production and exploration commitments.

"The government hopes that the PSC Contractors can play a more active role in increasing reserves and maintaining oil and gas production as well as meeting national energy needs in the future," Dadan concluded.