The 3rd International Conventions Upstream Oil and Gas 2022 (IOG 2022) has been held for three days in Bali. The event, which brought together all business stakeholders in the upstream oil and gas sector, resulted in commitments for oil and gas transactions reaching USD 2.3 billion or around IDR 35.8 trillion (exchange rate of IDR 15,600). A total of 28 commercial agreements were signed during the activities organized by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). From these dozens of agreements it is predicted to produce oil and condensate lifting of 265 thousand barrels of oil per day and an estimated total lifting of natural gas of 390 billion British thermal units (TBTU). Contract duration ranges from 2 to 11 years. "Potential revenues reach US$ 2.3 billion," said Head of SKK Migas Dwi Soetjipto at the event which was held at the Bali Nusa Dua Convention Center, Friday (25/11/2022).
The agreement includes 10 documents regarding the Election Not To Take in Kind (ENTIK) Procedure. This is an agreement that regulates the duties and responsibilities between SKK Migas and the PSC Contractor as the Seller of the State's share of Crude Oil and Condensate. Then there are also 18 documents of the natural gas sale and purchase agreement (GSA), amendments to the PJBG, heads of agreement (HoA), memorandum of understanding (MoU) for pipeline gas, LNG and LPG between sellers and buyers. The signing of these contracts not only generates income, but most importantly supports national economic growth. All of the sold crude oil and condensate will be supplied for domestic needs. Part of the sold gas will be supplied to fertilizer and petrochemical factories in South Sumatra and Central Sulawesi, for industrial development in West Java, Central Java, East Java and Central Sulawesi, as well as electricity for PLN's needs. "While the LPG from South Sumatra is planned to be entirely supplied for domestic needs. This shows the commitment of upstream oil and gas in maintaining national energy security," said Dwi Soetjipto. Commercialization of oil and gas, especially natural gas, is one of the strategic pillars in supporting SKK Migas' long-term vision of producing 1 million barrels of oil per day and 12 billion cubic feet per day (BSCFD) of natural gas in 2030. This production will be prioritized for buyers. domestic. The challenge is that domestic demand for natural gas tends to stagnate. Since 2012, the average growth in the use of natural gas by domestic buyers has been 1 percent per year. This growth is lower than the national economic growth which reaches 4-5% per year. "There needs to be a breakthrough from all parties to increase the demand for natural gas buyers in the country," said Dwi Soetjipto. The agreements signed included ENTIK between SKK Migas and PT Pertamina Hulu Energi, PJBG between PT Pertamina EP and PT Krakatau Steel, amendments to the GPA between PT Medco E&P Indonesia and PT Pupuk Sriwidjaja Palembang, MoU between Inpex Masela and PT Badohopi Nickel Smelting Indonesia, HoA between PT Pertamina (Persero) and PT Nusantara Regas and Jadestone Energy (Lemang) Pte Ltd and PT Pertamina Patra Niaga. The ENTIK agreement signed at the IOG 2022 event gives authority to PT Pertamina Hulu Energi and its subsidiaries to market the state's share of crude oil and condensate.
