Pertamina EP Signs Cooperation Agreement on Brown and Idle Wells

• 18 Jul 2025
• mk.novian.kusmana

Yogyakarta - With the implementation of Ministerial Regulation No. 14 of 2025 on Cooperation in the Management of Working Area Portions for Increasing Oil and Gas Production, Pertamina EP Eastern Indonesia Regional Subholding Upstream Pertamina held a Signing Ceremony of the Cooperation Agreement on Brown and Idle Wells in the Cepu Field on July 8, 2025.

The cooperation agreement was signed between PT Pertamina EP and PT Blora Patra Energi, KUD Warga Tani Makmur, PT Bojonegoro Bangun Sarana for brown wells, and PT Wimaya Energi for idle wells.

The signing ceremony was attended by Arief Rohman, Regent of Blora; Setyo Wahono, Regent of Bojonegoro; Ariana Soemanto, Director of Upstream Oil and Gas Business Development at the Ministry of Energy and Mineral Resources (ESDM); Bambang Prayoga, Head of Production and Facilities Maintenance Division at SKK MIGAS; Muhamad Arifin, Director IV of Pertamina EP; Benny Hidajat Sidik, VP Production & Project Pertamina Hulu Energi; as well as representatives from Regional-Owned Enterprises (BUMD) and Village Unit Cooperative (KUD).

Muhamad Arifin, Acting President Director of PT Pertamina EP, stated that this agreement was carried out in the spirit of collaboration to support the achievement of Asta Cita’s goal of energy self-sufficiency. “With the enactment of Ministerial Regulation No. 14/2025, the operation of brown wells managed by BUMD and KUD now has legal grounds. It is expected not only to support production targets but also to improve governance in operations, including the implementation of technology, safety, and reduction of environmental impacts,” explained Arifin.

Similarly, Ariana Soemanto, Director of Upstream Oil and Gas Business Development at ESDM, emphasized that BUMD and KUD, in producing oil, have a responsibility for environmental improvements, and therefore require guidance through Good Engineering Practice.

“Good Engineering Practice is essential for BUMD and KUD in managing brown wells to ensure that well operations can run safely, reliably, and efficiently,” said Ariana.

Setyo Wahono, Regent of Bojonegoro, emphasized that legal certainty is a crucial aspect for local businesses and expressed hope that the management of brown wells would increase Regional Original Revenue (PAD).

Meanwhile, Arief Rohman, Regent of Blora, noted that there is potential for 1,000 wells in Blora Regency that could be optimized to boost oil production. Currently, about 1,500 residents rely on brown wells for their livelihood, and when no cooperation permits were in place, poverty increased as the local economy stagnated. “We hope that with this cooperation signing, the economic cycle in Blora, especially in brown well areas, will revive and bring positive impacts to the community,” said Arief.

Pertamina Eastern Indonesia Regional Subholding Upstream manages upstream oil and gas operations geographically spread across East Java, Sulawesi, the Maluku Islands, and Papua, consisting of both offshore and onshore assets. In addition, there is one downstream asset, Donggi Senoro LNG. The working areas under Eastern Indonesia Regional include Zone 11 (Alas Dara Kemuning, Cepu, WMO, Randugunting, Sukowati, Poleng, Tuban East Java), Zone 12 (Jambaran Tiung Biru, Banyu Urip), Zone 13 (Donggi Matindok, Senoro Toili, Makassar Strait, Melati), and Zone 14 (Papua, Salawati, Salawati Basin, Binaiya).

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