Sakakemang Projects Awaits Phase I of POD’s Approval

By Editorial Team 19/10/2020
Summary

The continuation of the Sakakemang Block development by Repsol remains unclear. The Minister of Energy and Mineral Resources (ESDM) has not yet approved the Phase I of the PoD (Plan of Development) for the oil and gas work area located in Musi Banyuasin, South Sumatra. “The project is still waiting for approval from the Energy and Mineral Resources Minister on Phase I of the POD,” the Deputy Operations for the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas), Julius Wiratno, revealed on Friday (10/16).

The problem is because the investment cost that Repsol has proposed for the Sakakemang project is relatively high, totally different from what the government wants. The high costs will also raise the gas selling price to consumers. “The review is currently underway. The Energy and Mineral Resources Ministry does not want the gas price to be high; it must be affordable,” the Deputy Head of SKK Migas, Fatar Yani Abdurrahman, explained.

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