“We will contribute to energy self sufficiency to meet oil needs,” Transmigration Minister M Iftitah Sulaiman Suryanagara stated at a joint press conference in Jakarta on Monday.
The statement followed a recent discovery by SKK Migas regarding 13 potential new wells in the Samboja area with reserves of 0.96 million barrels.
The new wells will be managed by PT Pertamina Hulu Sanga Sanga in addition to the 79 existing wells already operating in the area.
To start the drilling process the ministry and SKK Migas have agreed on land use permits under a right of use arrangement.
This allows the company to use land owned by the state for a specified period of time in accordance with applicable laws.
Suryanagara stated that through this agreement the government has created a new center of economic growth through the strategic oil and gas sector.
The agreement is expected to create a multiplier effect including the development of basic infrastructure and new job opportunities.
Local small businesses around the oil and gas wells are also expected to grow as a result of the increased industrial activity.
"Today marks a crucial chapter in the transmigration transformation process," Suryanagara said during the signing ceremony.
The minister expressed gratitude that the government has been able to establish a new center of economic growth for the region.
SKK Migas head Djoko Siswanto expressed his appreciation for the support in utilizing the transmigration area for exploration and production activities.
The partnership aims to strengthen national energy security while providing direct economic benefits to the transmigration communities in East Kalimantan.
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Translator: Putu Indah Savitri, Yashinta Difa
Editor: Arie Novarina
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