Energy Equity as the operator of the Sengkang Block has only paid part of the signature bonus.
DOCK. CHEVRON
The Ministry of Energy and Mineral Resources (ESDM) targets the signing of the Sengkang Block contract to be implemented next week.This contract will be signed after Energy Equity Epic (Sengkang) Pty.Ltd. as the operator completes signature bonus payments and guarantees of implementation.
Deputy Minister of ESDM Arcandra Tahar said the total signature bonus must be paid by Energy Equity of US $ 12 million.Meanwhile, the first five-year Definite Work Commitment (KKP) was US $ 88 million."The late production sharing contract was signed on Monday next week," he said in Jakarta on Tuesday (4/12).
The KKP fund will be used not only for the Sengkang Block.The budget will be used for joint studies and seismic activities in the Karaeng Block which is also close to Sengkang.Karaeng Block is located on the mainland of South Sulawesi.
According to Arcandra, at the initial negotiations on the discussion of the terms and conditions ( terms and conditions ) of the Sengkang Block with the Ministry of Energy and Mineral Resources, Enerqy Equity wanted the KKP to be even lower.So that the process of determining the Sengkang Block is longer.
In the same place, ESDM Ministry's Director General of Oil and Gas Djoko Siswanto said that he had received a portion of the signature bonus deposit from the Energy Equity for the Sengkang Block or US $ 6 million.However, Energy Equity will immediately pay off the rest.
Currently the Block is managed by Energy Equity Epic (Sengkang) Pty.Ltd.This block is located on the mainland of South Sulawesi with an area of 2,925.23 kilometers (km).
(Read: Government Extends Energy Equity in Sengkang Block with Terms )
Referring to the official Energy Equity website, the Sengkang block currently has proven gas reserves of 800 BCF and has 2 TCF resources.Sengkang's average gas production for the January-July 2018 period is around 32 mmscfd.Such gas production can be used to supply the needs of a 128 megawatt (MW) power plant.
Energy Equity has 100% management rights in the Sengkang Block.They are also developing Wasambo Field.This project is estimated to produce oil and gas amounting to 12,061 barrels of oil equivalent per day.
