With Partners, Pertamina Acquisition the Mahakam Bunga and Peri Working Areas
Jakarta, February 25, 2023 - PT Pertamina Hulu Energi (PHE), as an Upstream Subholding, obtained a direct bid auction for the Bunga Working Area (WK) and the Peri Mahakam Working Area. The Director General of Oil and Gas of Ministry of Energy and Mineral Resources (ESDM), Tutuka Ariadji, announced the 2022 Oil and Gas Working Area (WK) Auction results.
A total investment commitment of US$14.4 million (IDR 218.8 billion) was made by investors for three WKs, of which two were won by the PHE consortium with partners following a Joint Study. The Bunga WK was won by the PHE consortium and POSCO INTERNATIONAL Corporation, while the PHE consortium and Eni Indonesia Limited won the Peri Mahakam WK.
Bunga WK covers an area of 8,500 km2 in the deep sea off the coast of East Java, while Peri Mahakam CA is located offshore and on the mainland of East Kalimantan, covering an area of 7,414.43 km2.
The total investment of Fixed Commitment for the first three years of the exploration period from the Bunga CA is US$4 million. It includes G&G study activities, as well as the acquisition and processing of 350 km2 of 3D seismic data. Meanwhile, the total investment in the Firm Commitment for the first three years of the Peri Mahakam WK exploration period is US$7.2 million, which included G&G study activities and the acquisition and processing of 150 km2 of 3D seismic data and the drilling of one exploration well.
The President Director of PHE, Wiko Migantoro, explained that the Government appointment of Bunga and Peri Mahakam WKs to the PHE consortium and partners was a significant milestone for Pertamina. "We express our gratitude for the Government's trust in our competence so that we were entrusted to manage the Bunga and Peri Mahakam WKs. The Bunga and Peri Mahakam WKs management is a form of PHE's commitment to adding new resources through domestic exploration, increasing capability to continue growing," said Wiko.
PHE is implementing a strategy to continue increasing domestic resources through domestic exploration assets acquisition to open up opportunities for discovering big fish in Indonesia and getting the full benefits of reserves through full lifecycle management, which is expected to continue to increase PHE's value. The Bunga WK management will increase PHE's capability in managing deepwater assets, while the Peri Mahakam WK is in a location that is profitable for PHE with an established Petroleum Operation in the East Kalimantan area.
As a contributor to national oil and gas production, PHE will continue to explore various potentials through the company's main strategy to support the sustainability of the upstream oil and gas business. In carrying out operational activities, PHE also always maintains operational reliability and upholds occupational health and safety aspects.
PHE has been registered with the United Nations Global Compact (UNGC) as a participant/member since June 2022. PHE is committed to the Ten Principles of UNGC in its strategy and operations, as part of implementing the Environmental, Social, and Governance (ESG) aspects. PHE will continue to develop domestic and international operations management professionally to realize the achievement of becoming a world-class oil and gas company that is Environmentally Friendly, Socially Responsible, and has Good Governance.