SKK Migas Gives Green Light for Sakakemang Project

Summary

The Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) said that the negotiation on the gas price of the Sakakemang Block with Repsol SA as the operator had reached an agreement. The SKK Migas head, Dwi Soetjipto, revealed that the price of gas from the work area located in Musi Banyuasin, South Sumatra, would follow the government’s limit at US$6 per MMBTU for certain industrial sectors. "We have approved the IRR (internal rate of return), after consulting with the Energy and Mineral Resources (ESDM) Ministry," he said on Thursday (11/19).

Dwi explained that the gas price agreement meant that SKK Migas could now continue processing Sakakemang Block’s plan of development (PoD). Moreover, the Sakakemang Block Development Project received serious attention from the government. "PoD [will be completed] this year. We hope to process it in one or two weeks," he stated.

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