PT Pertamina Hulu Sanga Sanga Transfers 10 Percent Participating Interest in WK Sanga Sanga to East Kalimantan Regional-Owned Enterprise

• 08 Jul 2024
• mk.novian.kusmana

PT Pertamina Hulu Sanga Sanga (PHSS) the Regional Kalimantan Subholding Upstream of Pertamina and PT Migas Mandiri Pratama Sanga Sanga (MMPSS), the Regional-Owned Enterprise (BUMD) appointed by the East Kalimantan Provincial Government to manage the Participating Interest (PI) in the Sanga Sanga Working Area, have achieved a significant milestone at the start of 2024.
PHSS and MMPSS have signed an Agreement on the Transfer and Management of a 10 percent Participating Interest (PI) in the Sanga Sanga Working Area for the Province of East Kalimantan (Kaltim) in Jakarta on Monday, (15/01)
The signing ceremony was attended by Andre Wijanarko, General Manager of Zona 9, representing PHSS Director John Anis, and MMPSS Director Prasiddha Hestu Narendra, witnessed by Ujang Rachmad, Assistant II for Economic Affairs and Development Administration of East Kalimantan Province, and Edy Kurniawan, President Director of PT Migas Mandiri Pratama Kalimantan Timur, the parent company of MMPSS.
Andre Wijanarko stated that the synergy between Pertamina and the East Kalimantan Provincial Government is expected to support the advancement of the upstream oil and gas industry both regionally and nationally.
"We are committed to realizing this 10 percent PI transfer as we believe that the sustainability of the Company's operations and business is crucial in supporting Pertamina's energy transition policies and achieving the national production targets set by SKK Migas, which are 1 million barrels of oil and 12 billion standard cubic feet of gas by 2030," explained Andre.
He added that the 10 percent PI transfer will directly benefit the region through increased local revenue, knowledge transfer, and MMPSS’s experience in managing oil and gas working areas. Moreover, the involvement of the Provincial Government and Regional-Owned Enterprise will help create a conducive environment for oil and gas operations in the Sanga Sanga Working Area.
“The progress made in the PI transfer stages is thanks to close cooperation and coordination between Pertamina, the East Kalimantan Provincial Government, the Ministry of Energy and Mineral Resources, SKK Migas, and the involved Regional-Owned Enterprise,” he added.
Following the signing of this agreement, PHSS and MMPSS will collaborate with SKK Migas to submit the final approval request to the Minister of Energy and Mineral Resources. The 10% PI transfer is an implementation of Ministerial No. 37 of 2016, concerning the Provisions for Offering 10% Participating Interest in Oil and Gas Working Areas.
MMPSS Director Prasiddha Hestu Narendra expressed that the synergy with Regional-Owned Stated will provide benefits and contributions to both East Kalimantan Province and Pertamina. “It is hoped that through this synergy, we can achieve mitigation to address complex operational and business challenges in the oil and gas sector, particularly with mature wells, by applying for oil and gas incentives for the government,” he said.
One mitigation strategy, Prasiddha continued, involves the application of secondary recovery technology to support oil and gas operations, especially for idle wells or wells that have experienced production declines.
Ujang Rachmad, Assistant II for Economic Affairs and Development Administration of East Kalimantan Province, hopes this agreement will encourage Regional Owned-Enterprise to make profitable business breakthroughs, including in terms of capital, asset management, and human resource management. 
[Regional Kalimantan]
 

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