PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) signed an Agreement on the Transfer and Operatorship of 10% Participating Interest (PI) of ONWJ Block with PT Migas Hulu Jabar ONWJ (MUJ ONWJ) at the Office of West Java Governor, in Bandung, on Tuesday, 9 December 2017.
The agreement was signed by the President Director of PHE ONWJ, Beni J Ibradi and President Director of MUJ ONWJ, Ryan Alfian Noor, witnessed by West Java Governor Ahmad Heryawan. Attending the event were Deputy of Business Support of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), M. Atok Urrahman, DKI Jakarta Deputy Governor for Spatial Planning and Environment, Oswar M. Mungkasa, and Director of Upstream Oil and Gas Business Development of the Ministry of Energy and Mineral Resources.
Ahmad Heryawan explained that the PI transfer process is time-consuming. He hopes all parties can support the implementation of this agreement. “This is the proof that the upstream oil and gas industry is committed to providing benefits for the region,” he added.
Based on the Regulation of the Minister of Energy and Mineral Resources (EMR Ministerial Regulation) Number 37 of 2016 on the Requirements for the Offer of 10% Participating Interest of Oil and Gas Working Areas, any Regional Government-Owned Enterprise (BUMD) can be a holder of participating interest of a maximum of 10% in the operatorship of oil and gas blocks in the relevant region. The regions covered by the ONWJ block are West Java and DKI Jakarta.
Atok stated that this PI transfer agreement is the first transfer following the issuance of EMR Ministerial Regulation No. 37 of 2016. He hopes that the PI transfer agreement in the oil and gas block involving other local governments can be realized as in the case of ONWJ. The synergy between PHE ONWJ and MUJ ONWJ, as well as West Java and DKI Jakarta Provincial Government is expected to ensure the smooth running of the ONWJ Block operations.
“The regions play an important role to facilitate operations, particularly those related to licensing and regulations that support the upstream oil and gas industry,” Atok said.
Beni added that PHE ONWJ fully supports 10% PI participation by local government. This is expected to be a good start to jointly advance the oil and gas industry in West Java and DKI Jakarta. “The goal is to support fulfilling the needs of national energy and the needs of industrial players, especially those whose working areas are located in West Java and DKI Jakarta,” he asserted.
PHE ONWJ is the operator in the Production Sharing Contract of ONWJ Block signed with SKK Migas, which has been effective since 19 January 2017. PHE ONWJ’s operating area covers an area of approximately 8,300 square kilometers at the Java Sea, located north of the Thousand Islands to the waters north of Cirebon. The facility owned by PHE ONWJ consists of more than 200 platform structures, 404 underwater pipelines with the length of 1,900 kilometers. PHE ONWJ’s oil and gas production is channeled entirely for national strategic needs such as fuel, power plants and raw materials for fertilizer production. (acu)