The Ministry of Energy and Mineral Resources has decided to extend the management of Sengkang Block for the existing operator, Energy Equity Epic (Sengkang) Pty Ltd, for 20 years after the contract expires in 2022.
Jakarta (ANTARA News) - The Ministry of Energy and Mineral Resources has decided to extend the management of Sengkang Block for the existing operator, Energy Equity Epic (Sengkang) Pty Ltd, for 20 years after the contract expires in 2022.

Information from the ministry, received by Antara here on Saturday, mentioned that no other contractor had submitted a proposal for the management of the block.

With the extension of the Sengkang Block, the country received a signature bonus of US$10 million and a Definite Work Commitment worth $60 million.

"Of the four blocks terminated in 2022, there is one that is clear, namely the Energy Equity Epic (Sengkang) in the Sengkang Block, which is given to Sengkang, an existing or existing operator with Definite Work Commitment of $60 million, and a signature bonus of $10 million," Deputy Minister of Energy and Mineral Resources Arcandra Tahar stated.

According to him, the contract extension is given by the government for 20 years after the previous contract expires.

Arcandra explained that in 2022, there would be four blocks that would expire, namely Coastal Plains and Pekanbaru (CPP), Sengkang, Tarakan, and Tungkal.

The Sengkang Block is located in South Sulawesi Province.

At present, the Sengkang Block has a working area of 2,925.23 square kilometers, with a contract period of up to Oct 24, 2022.

Energy Equity EPIC (Sengkang) Pty. Ltd. has proven to have gas reserves of 800 BCF (billion cubic feet) and has 2 TCF (trillion cubic feet) of resources.

The average gas production of the Sengkang Block from January to July 2018 is around 32 mmscfd (million metric standard cubic feet per day).

As an illustration, 1 mmscfd of gas can be used as fuel for 4 megawatts. Therefore, 32 mmscfd can be equivalent of a 128 MW power plant.

Editing by Libertina/Yoseph Hariyadi

Reporter: Antara
Editor: Eliswan Azly
Copyright © ANTARA 2018