Indonesia Approves Eni's First PoD for Merakes and Merakes East Fields

By Editorial Team 18/01/2023
Oil rig
Summary

Energy and Mineral Resources (ESDM) Minister Arifin Tasrif finally approved Eni East Sepinggan Ltd's first plan of development (PoD I) for the Merakes and Merakes East fields. This approval was stated in a letter responding to the Upstream Oil and Gas Special Regulatory Task Force's (SKK Migas) recommendations on Dec 27, 2022. "The development of these fields will provide additional reserves to ensure supplies to the East Kalimantan System so that the Bontang LNG refinery can operate optimally," SKK Migas head Dwi Soetjipto said on Tuesday.

Eni East Sepinggan estimates that the cost required to develop both fields is about US$3.35 billion: US$2.14 billion for the capital expenditure (capex) and US$1.26 billion for the operation expenditure (opex). "Foreign direct investment like this will result in a multiplier effect for the upstream oil and gas segment supporting the industry because SKK Migas's policy dictates that oil and gas contractors (KKKS) prioritize the use of domestic goods and services," he elaborated.

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