West Papua Governor meets Minister of Energy and Mineral Resources to discuss realisation of 10% PI

Manokwari (ANTARA) - West Papua Governor Dominggus Mandacan, along with his team, held a meeting with the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia to discuss the realisation of the 10% participating interest (PI) and the regional gas allocation quota.

Assistant II of the West Papua Regional Secretariat, Melkias Werinussa, in a written statement received in Manokwari on Saturday, said the provincial government continues to strive to promptly obtain participation funds amounting to 10% from oil and gas (migas) production results.

“Yesterday (10/4), the Governor directly conveyed to the Minister of ESDM that the 10% PI funds could be realised,” Melkias said.

In addition to the 10% PI and a gas quota of 20 million standard cubic feet per day (mmscfd), the Governor also addressed the determination of new contract work locations for oil and gas companies operating in West Papua, as well as the establishment of people’s mining areas.

The provincial government has proposed several locations spread across three regencies, namely Manokwari, Pegunungan Arfak, and Teluk Wondama, as people’s mining areas (WPR), but central government approval is needed.

“The 20 mmscf gas quota is a commitment from the Minister, so West Papua receives two shipments per year,” Melkias said.

He added that Minister of ESDM Bahlil Lahadalia will coordinate with the British oil and gas company, British Petroleum (BP), to realise the 10% PI for West Papua, while Genting Oil is scheduled to start production in April 2027.

The discussion on the proposed WPR locations by the provincial government will first be comprehensively reviewed before being established by the DPR, ensuring that people’s mining operations do not face obstacles.

“The Minister of ESDM has instructed the relevant director general to coordinate with the West Papua ESDM Office to discuss the WPR proposal before it is established by the DPR,” Melkias said.

Head of the West Papua ESDM Office, Sammy Djunire Saiba, stated that local involvement in oil and gas management will drive the economy, in accordance with the mandate of Minister of ESDM Regulation Number 37 of 2016.

The provincial government has prepared documents for the establishment of a regional-owned enterprise (BUMD) responsible for managing the 10% PI funds from oil and gas production in Teluk Bintuni Regency.

“That regulation governs the provisions for offering a 10% participating interest in oil and gas working areas,” Sammy said.