Sengkang – The Ministry of Energy and Mineral Resources (ESDM) has again entrusted the management of the Sengkang Oil and Gas Block to Energy Equity Epic Sengkang Pty. Ltd (EEES) which ended on October 23, 2022. This extension approval letter was given by the ministry on November 28, 2018 and signed directly by the Minister of Energy and Mineral Resources. With this approval, EEES returned to managing the Sengkang Oil and Gas Block located in Wajo Regency, South Sulawesi for the next 20 years.
The contract extension for the Sengkang Block Working Area (WK) uses the Gross Split Production Sharing Contract (PSC) scheme. In this extension, the managing interest (participating interest/PI) of the Sengkang Block Work Area is Energy Equity Epic Sengkang Pty. Ltd as the operator with a PI of 51% and PT. Energi Mega Abadi (EMA) with a PI of 49%.
The procession of handing over the oil and gas production sharing contract was carried out in a simple manner at the Central Processing Plant (CPP) Kampung Baru which was attended by all EEES field management and officials from SKK Migas Kalimantan Sulawesi Representative, Sunday (23/10/22). In addition, the event was also attended by several officials from both parties through virtual online meetings, hoping that EEES could maintain the implementation of operational standards in the management of the Sengkang Oil and Gas Block in the era of the gross split PSC. SKK Migas also hopes that the obstacles related to gas distribution can be resolved soon so that Sengkang Block production can return to normal.
Meanwhile in EEES President Andi Riyanto expressed his deepest gratitude to the Government of Indonesia, especially the Ministry of Energy and Mineral Resources and SKK Migas for the trust given in managing the Sengkang Oil and Gas Block for the next 20 years, accompanied by a request for support from all relevant stakeholders for the smooth operation of the Sengkang Oil and Gas block. so as to contribute maximally to the country.
The Sengkang Oil and Gas Block has been operated by EEES since 1997 with the PSC Cost Recovery mechanism. Since production, this block has produced 278 Bcf of gas with 3 producing gas wells, namely the KB#4 well in Macanang Village, Kec. Majauleng, KB#6 in Lamata Village and KB#8 in Poleonro Village, Gilireng District. For about 23 years of operation, EEES has made many contributions to the progress of the surrounding area through employment, business opportunities for local residents, community development programs (CSR), contributions to the State Budget and the Wajo District Government through the Revenue Sharing Fund (DBH) and the presence of a network household gas (city gas) for the city of Sengkang and its surroundings. (*)
