Energy Equity Epic Contracts in the Sengkang Block Extended 20...

Energy Equity Epic Contracts in the Sengkang Block Extended 20 Years

September
01
/ 2018
15:44 WIB
By:David Eka Issetiabudi
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Energy Equity Epic (Sengkang) Pty Ltd in the Sengkang Block - Special
Bisnis.com , JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has decided to extend the management of the Sengkang Block by the existing operator Energy Equity Epic (Sengkang) Pty Ltd for 20 years after the contract expires in 2022.
This extension was decided considering that no other contractor submitted a proposal for the management of the block.
With the extension of the Sengkang Block, the country receives a US $ 10 million signature bonus and a US $ 60 million Definite Work Commitment (KKP)
"The four blocks terminated in 2022, one that is clear, namely Energy Equity Epic in the Sengkang Block, is given to Sengkang, an existing or existing operator with KKP of US $ 60 million and a signature bonus of US $ 10 million," said Deputy Minister of Energy and Mineral Resources Arcandra Tahar in a press statement on Saturday (1/9/2018).
Arcandra asserted that the contract extension was given by the government for 20 years after the contract expired. In the next 2022 there will be four blocks which will terminate the four blocks, namely Coastal Plains and Pekanbaru (CPP), Sengkang, Tarakan, and Tungkal.
Cooperation Contract of the Sengkang Block located in South Sulawesi. At present the Sengkang Block has a working area of 2.925.23 km with a contract period of up to October 24, 2022.
Energy Equity EPIC (Sengkang) Pty. Ltd. has proven gas reserves of 800 BCF (billion cubic feet) and has 2 TCF (trillion cubic feet) of resources.
Gas production on average Sengkang Block for the period January - July 2018 is around 32 mmscfd. As an illustration, 1 mmscfd of gas can be used as fuel for 4 MW of electricity generation, so 32 mmscfd can be analogous to the equivalent of 128 MW of electricity generation.