"This is one of the efforts to increase oil and gas production and the implementation of one of the strategies, namely converting resources to production," Head of the SKK Migas Program and Communication Division Hudi D. Suryodipuro stated in Jakarta, Friday.
Suryodipuro also remarked that approval for the Hulu Migas project, which is part of the National Strategic Project (PSN), was relatively fast, as the POD was approved within 10 months of the discovery of Geng North in October 2023.
In detail, the approved field development plan is for the Geng North Field with the North Ganal Working Area.
For the Gehem Field, development plans have been approved for the Ganal Working Area and the Rapak Working Area.
Suryodipuro revealed that with the approval of the POD, huge investment was expected to enter Indonesia, with an estimated investment cost, excluding sunk costs, of US$11.847 billion and operating costs, including ASR, VAT and Property Tax, of US$5.643 billion.
Hence, overall, an investment of US$17.9 billion will come in.
The total sunk cost of the North Ganal Working Area and the Rapak Working Area is set at US$859 million.
"The investment of Rp280 trillion is very large because it is 2.5 times larger than the investment in the Jakarta-Bandung high-speed train, which is around Rp112 trillion (around US$7.1 billion)," he stated.
Suryodipuro explained that the overall potential revenue, or gross revenue, is estimated to reach around US$39.457 billion.
From the revenue, the government's share is US$12.993 billion, or around 31.5 percent of the gross revenue.
The contractor's share is US$8.128 billion, or around 19.7 percent of the gross revenue, and cost recovery is US$18.336 billion, or around 44.4 percent of the gross revenue.
Suryodipuro said that based on the agreement in the POD, state revenue will be at least around Rp208 trillion (around US$13.3 billion).
"SKK Migas will carry out supervision and control as much as possible so that cost recovery can be made more efficient and state revenue can be pushed even bigger," he remarked.
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Translator: Putu Indah Savitri, Cindy Frishanti Octavia
Editor: Azis Kurmala
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