Indonesian Political, Business & Finance News

Ministry of Transmigration and SKK Migas to Develop Oil and Gas Potential in Transmigration Land

| Source: ANTARA_ID Translated from Indonesian | Energy
Ministry of Transmigration and SKK Migas to Develop Oil and Gas Potential in Transmigration Land
Image: ANTARA_ID

Jakarta (ANTARA) - The Ministry of Transmigration and SKK Migas have agreed to develop the potential of 13 new oil and gas wells in the Transmigration Land Management Rights (HPL) area of Samboja, Kutai Kartanegara Regency, East Kalimantan.

“The Ministry of Transmigration, God willing, will contribute to energy self-sufficiency to meet oil needs,” said Minister of Transmigration (Mentrans) M Iftitah Sulaiman Suryanagara during a press conference at the Meeting of the Head of SKK Migas with the Minister of Transmigration in Jakarta on Monday.

Currently, PT Pertamina Hulu Sanga Sanga (PHSS) manages 79 wells located in the Samboja transmigration HPL area.

Furthermore, Iftitah continued, SKK Migas reported the discovery of 13 new oil and gas wells also located in the Samboja transmigration HPL area.

Following up on this discovery, the Ministry of Transmigration and SKK Migas held discussions that culminated in an agreement to utilise the transmigration HPL for developing the oil and gas wells with Right of Use.

Right of Use is the right to use and/or collect the proceeds from state-owned or third-party land for a certain period in accordance with applicable legal provisions.

“So, the HPL remains owned by the Ministry of Transmigration, but there will be a win-win collaboration between SKK Migas and the Ministry of Transmigration. We have agreed that the chosen option is the utilisation of transmigration HPL,” said Iftitah.

Through this agreement, Iftitah stated that the government has introduced a new economic growth centre through the strategic oil and gas sector.

In addition to developing oil and gas wells, the agreement also has a multiplier effect, such as the construction of basic infrastructure by industries involved in developing the oil and gas wells, job creation, and the growth of small businesses around the oil and gas wells.

“Thus, today is also an important chapter in the transformation process of transmigration. Praise be to God, we can create a new economic growth centre,” said Iftitah.

On that occasion, the Head of SKK Migas, Djoko Siswanto, expressed appreciation for the support of the Ministry of Transmigration in utilising transmigration land for oil and gas exploration and production activities.

“Currently, oil and gas are greatly needed by the community. Searching for oil outside is not easy, and even if found, it is expensive. This is very strategic,” said Djoko, his familiar nickname.

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