PT Pertamina Hulu Energi (PHE) North East Java and PT Posco International ENP Indonesia (Posco ENP) have signed to manage the Interest Working Area (WK) for the next 30 years.
PHE North East Java is part of Pertamina’s upstream sub-holding. Meanwhile, Posco international corporation, established in 1967, is a Korean company working in various fields such as energy, iron, agriculture, material components, and others.
The Bunga WK is located in the deep sea off the coast of East Java with an area of 8,500 square kilometers (km2), with a total definite commitment investment for the first 3 years of the exploration period with a total cost of US$ 4 million, which covers geological and geophysical studies as well as acquisition and processing of 3D seismic data covering an area of 350 km2.
The government appointed both PHE and Posco ENP as managers of the Bunga WK with a participating interest of 50% for each entity, and Posco ENP as the operator.
The two entities signed a Cooperation Contract (KKS) on July 25, 2023. The Interest WK PSC uses the form of a Cost Recovery profit sharing contract.
“The management of the Bunga CA is also a concrete manifestation for PHE to increase its capabilities in managing deep-sea assets. In addition, PHE is ready to partner in a broader strategic manner with POSCO, where the management of the Bunga CA is the first entry for POSCO in the upstream oil and gas business in Indonesia,” said Wiko Migantoro, President Director of PT Pertamina Hulu Energi (PHE).
The plan is for the consortium to carry out a full-scale G&G study to evaluate exploration potential prior to the first exploratory drilling.
This signature was carried out by Jeon-Hyeok Lee, Director of Posco ENP and Endro Hartanto, Director of PT Pertamina Hulu Energi North East Java and Dwi Soetjipto, Head of SKK Migas.
Meanwhile, this process was witnessed by Arifin Tasrif, Minister of Energy and Mineral Resources; Wiko Migantoro, President Director of PT Pertamina Hulu Energi (PHE); and Tak-Jeong, President Director of Posco International Corporation (POSCO).
