Wednesday, May 29, 2024

Pertamina and Posco jointly manage Bunga working area for the next 30 years, boosting Indonesia’s oil and gas exploration

Reading Time: 2 minutes
Journalist IBP

Journalist

Mahinda Arkyasa

Editor

Interview

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).

Journalist IBP

Journalist

Mahinda Arkyasa

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

PT Medco Energi Internasional has announced the divestment of its stake in the oil and gas field Area 47 in Libya to the Libya National Oil Corporation (NOC).
Indonesia has harnessed less than 1 percent of its solar energy potential, lagging significantly behind neighboring countries as fossil fuels continue to dominate
CNGR, a major Chinese company in the nickel processing industry and a key supplier of battery components for US electric car producer Tesla, is aggressively increasing its investments in Indonesia.
PT Freeport Indonesia (PTFI) President Director Tony Wenas has confirmed that the copper smelter in the Java Integrated Industrial Port Estate (JIIPE) area in Gresik, East Java, is on track to start operations by June 2024.
Jakarta, May 27, 2024 − PT Perusahaan Gas Negara (PGN), a gas subholding of State energy company PT Pertamina, has paid off the remaining bonds worth US$396,709,000 in accordance to the maturity date as part of the repayment of the overall bond value of US$1.35 billion issued in 2014 and listed on the Singapore Exchange.
Coordinating Minister for the Economy, Airlangga Hartarto, met with Daisuke Arakawa, a senior executive at Nikkei Inc, in Tokyo on Friday, outlining the Indonesian government’s commitment to energy transition through collaboration with Japan. One key area of cooperation is investment in electric vehicles (EVs).