Indonesian Political, Business & Finance News

Contractors in Aceh Agree to Purchase Production from Community Oil Wells

| Source: ANTARA_ID Translated from Indonesian | Energy
Contractors in Aceh Agree to Purchase Production from Community Oil Wells
Image: ANTARA_ID

Banda Aceh, Aceh — Production sharing contractors (KKKS) under the authority of the Aceh Oil and Gas Management Agency (BPMA) have signed three cooperation agreements (PKS) for the purchase of production from community oil wells within working areas in Aceh.

“This step represents one of our first milestones and a form of our collective concrete action,” said the Head of BPMA, Mawardi Nur, in a statement received in Banda Aceh, Aceh Province, on Friday.

The three agreements were signed between KKKS in Aceh and community oil well cooperatives/SMEs, specifically: the Keuramat Jaya Energy Producer Cooperative with PT Pema Global Energy (PGE); the Tata Seuramo Peureulak Producer Cooperative with PT Aceh Timur Energi dan Mineral (ATEM) and PT Medco E&P Malaka; in Jakarta, Friday.

Mawardi stated that this move is part of an effort to accelerate the implementation of production cooperation for community oil wells in Working Area (WK) Block A of East Aceh and WK Block B of North Aceh.

Mawardi noted that he received directives from the Minister of Energy and Mineral Resources (ESDM) to continuously increase oil and gas lifting in Aceh. This directive aligns with President Prabowo Subianto’s ‘Astacita’ mission to strengthen national energy security.

“We continue to strengthen national energy resilience and independence, as well as optimising resources for the greatest possible welfare of the community,” he said.

According to him, this achievement also serves as evidence that synergy and collaboration between the government, BPMA, KKKS, regional-owned enterprises (BUMD), cooperatives, SMEs, and the community can produce concrete steps within a relatively short period.

“I want to ensure that every directive and policy can be translated into concrete work that benefits the community and supports the increase of Aceh’s oil and gas lifting,” he said.

He added that the signing of these agreements is not the end of the process, as efforts must continue to ensure that production is carried out safely, orderly, and professionally, while meeting safety and environmental regulations and providing real economic benefits to the community.

He emphasised that moving forward, BPMA will continue to oversee and strengthen coordination with KKKS and all stakeholders, ensuring every process adheres to regulations.

“We want community wells to be not only legal but also productive, safe, sustainable, and capable of providing added value for Aceh,” he asserted.

He added that BPMA also continues to push for the acceleration of various strategic programmes in Aceh’s upstream oil and gas sector, prioritising real work, collaboration, legal certainty, safety, environmental protection, and community benefits.

“Our target is clear: how Aceh’s potential can be managed effectively to contribute to national lifting while simultaneously increasing the welfare of the people of Aceh,” said Mawardi Nur.

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