Pertamina Hulu East Kalimantan Gets Incentives from the Government

    PT Pertamina Hulu Kalimantan Timur (PHKT), a Cooperation Contract Contractor under the supervision of SKK Migas as well as part of the Pertamina Subholding Upstream Regional Kalimantan Zone 10, officially received fiscal incentive approval from the Government of Indonesia, through the Ministry of Energy and Mineral Resources (ESDM) on January 12, 2022.

Blogger Agus Purnomo in SKK Migas

    The provision of incentives to PHKT is part of the Government's strategy in order to achieve the national oil and gas production target of 1 million barrels of oil per day and 12 billion standard cubic feet of gas per day by 2030. 

    This incentive approval is given to the incentive proposal initiated by PHKT since 2020 which refers to the Minister of Energy and Mineral Resources No. 52 of 2017 concerning Gross Split Production Sharing Contracts taking into account the economics of the field in accordance with applicable regulations.

    Based on the approval letter from the Minister of Energy and Mineral Resources No. T-24/MG.04/MEM.M/2022 dated January 12, 2022, regarding the Approval of Addition of Split to the Cooperation Contract for the East Kalimantan & Attaka Working Area, PHKT gets incentives in the form of additional profit sharing/split.

    President Director of PT Pertamina Hulu Indonesia (PHI)-Regional Kalimantan, Chalid Said Salim, said that the provision of incentives is very important to encourage the continuity of oil and gas operations and the investment needed to increase the recovery of oil and gas reserves and resources in the East Kalimantan & Attaka WK.

“With this incentive, the existing and new field development plans can be continued. This incentive can support increasing reserves and maintaining PHKT production levels so that PHKT can continue to contribute to energy supply for Indonesia," he said.

    In 2021, PHKT recorded an oil production figure of 9.3 thousand barrels of oil per day (MBOPD) and gas production of 40.2 million standard cubic feet per day (MMSCFD). PHKT will continue to strive to improve performance, especially after receiving government incentives, in order to support the investment climate and national energy security.

Investor Daily, Page-9, Saturday, Feb 12, 2022