Jakarta – PT Pertamina Hulu Sanga Sanga (PHSS) and PT Migas Mandiri Pratama Sanga Sanga (MMPSS) have achieved a new milestone in early 2024. Both parties have signed an Agreement on the Transfer and Management of 10 percent Participating Interest (PI) in the Sanga Sanga Working Area (WK) for the East Kalimantan Province in an event in Jakarta on Monday (15/1).

The transfer of a 10 percent Participating Interest (PI) from PHSS to MMPSS, the Regional-Owned Enterprise (BUMD) appointed by the East Kalimantan Provincial Government to manage the PI in the Sanga Sanga WK, was attended by GM Zona 9 Andre Wijanarko. He represented PHSS Director John Anis and MMPSS Director Prasiddha Hestu Narendra, while being witnessed by Assistant II for Economic Affairs and Administrative Development of East Kalimantan Province Ujang Rachmad and Edy Kurniawan, the Director of PT Migas Mandiri Pratama East Kalimantan, which is the parent company of MMPSS.

Andre Wijanarko conveyed that the synergy between Pertamina and the East Kalimantan Provincial Government aims to advance the upstream oil and gas industry in the region and at the national level.

"We are committed to realizing this 10% PI transfer because we believe that the sustainability of the company's operations and business is crucial in supporting Pertamina's energy transition policy and achieving the national production target set by SKK Migas of 1 million barrels of oil and 12 billion standard cubic feet of gas by 2030," explained Andre.

He stated that allocating 10 percent PI would result in additional regional revenue and the sharing of knowledge and experience from MMPSS in managing the oil and gas WK. Additionally, the involvement of the Provincial Government and BUMD can contribute to fostering a conducive environment for oil and gas operations in the Sanga Sanga WK.

"The progress achieved in this PI transfer phase is thanks to the close cooperation and coordination between Pertamina, the East Kalimantan Provincial Government, the Ministry of Energy and Mineral Resources, SKK Migas, and the involved BUMD," 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 allocation of 10% PI aligns with the implementation of Minister of Energy and Mineral Resources Regulation No. 37 of 2016, which outlines the terms for offering a 10 Percent PI in Oil and Gas Working Areas.

MMPSS Director Prasiddha Hestu Narendra stated that collaboration with BUMD would yield benefits and contributions to East Kalimantan Province and Pertamina. "Hopefully, through this synergy, we can achieve mitigation to address the challenges of fairly complex oil and gas operations with relatively mature wells, including implementing oil and gas incentives for the government," he said. Prasiddha continued that implementing secondary recovery technology is one of the mitigation measures to support oil and gas operations, especially for idle wells and those that have experienced a decline in production.

Assistant II for Economic Affairs and Administrative Development of East Kalimantan Province Ujang Rachmad hopes this agreement can encourage BUMD to make profitable business breakthroughs, including capital, asset management, and human resource management-related issues.

PT Pertamina Hulu Sanga Sanga (PHSS) is a subsidiary of PHI that manages upstream oil and gas operations according to ESG (Environmental, Social, Governance) principles in the Sanga Sanga Working Area in East Kalimantan. As a Contractor Cooperation Contract (KKKS) of SKK Migas, PHSS, along with other PHI subsidiaries and affiliates, continues to innovate and apply various technologies to produce energy that is safe, efficient, reliable, compliant, and environmentally friendly to realize #EnergiKalimantanUntukIndonesia. Further information about PHI is available at https://phi.pertamina.com.