When SE met Indonesia’s VicePresident, the expectation was that...

When SE met Indonesia’s VicePresident, the expectation was that the Sengkang PSC extension will beannounced towards the end of 2018. According to the 13 Nov 2018  Bisnis.com article this timetable looks reasonable (see bold typed sentences (my emphasis)).

 

https://translate.google.com/translate?hl=en&sl=id&u=http://industri.bisnis.com/read/20181113/44/859484/pemerintah-prioritaskan-penandatanganan-kontrak-blok-terminasi-2022&prev=search

 

 

The Government Prioritizes the Signing of the 2022Block Termination Contract

November 13 2018

20:14 WIB

By: David Eka Issetiabudi

 

:

Bisnis.com , JAKARTA - The Ministry of Energy and Mineral Resourcesprioritizes preparations for signing the 2022 Block Termination contract beforedeciding on the termination block management in 2023.

 

Deputy Minister of ESDM ArcandraTahar said, the signing of the contract for the 2022 termination block was amajor concern. Of the four 2022 termination WKs, just leave the Sengkang Block which the winner has not yetannounced.

 

"We will complete 2022, this production sharingcontract [completed] first," he said, Monday (11/12/2018).

 

Meanwhile, for the other three oiland gas blocks, the WK Tarakan, Coastal Plains and Pekanbaru (CPP) and TungkalWKs are set to be managed further by the Existing Contractor in the form ofGross Split Production Sharing Contracts and a 20-year contract period.

The total signature bonus that theGovernment will receive is US $ 13.95 million or around Rp.186 billion. For thetotal investment value of the Defined Work Commitment Plan (KKP), the first 5years of the contract amounted to US $ 179.15 million Rp.2.4 trillion.

 

Arcandra explained that the Sengkang Block announcement willbe done as soon as possible in accordance with applicable procedures. He hoped,the announcement of winners could be completed by the end of this year.

 

According to him, for theannouncement of the 2023 termination block management, so far it is still underdiscussion. The oil and gas blocks will expire in 2023, namely Onshore JabungWK (February 26, 2023), Rimau WK (April 22, 2023), and WK Corridor (December19, 2023).

 

"Jabung also will be discussedlater," he added.