Jakarta - PT Pertamina Hulu Kalimantan Timur (PHKT), a Production Sharing Contract Contractor under the supervision of SKK Migas and part of Pertamina Subholding Upstream Regional Kalimantan Zona 10, has officially received fiscal incentive approval from the Government of Indonesia through the Ministry of Energy and Mineral Resources (ESDM) in January 12, 2022.

The provision of incentives to PHKT is part of the Government's strategy in order to achieve national oil and gas production target of one million barrels of oil per day and 12 billion standard cubic feet of gas per day by 2030. The incentive approval was given to the incentive proposal initiated by PHKT since 2020, refers to the Minister of Energy and Mineral Resources No. 52 of 2017 about Gross Split Production Sharing Contracts by considering economics of the field in accordance with applicable regulations.

Based on the approval letter from the Minister of Energy and Mineral Resources No. T-24/MG.04/MEM.M/2022, January 12, 2022 regarding the approval of split addition to the Production Sharing Contract for the East Kalimantan & Attaka Working Area (WA), PHKT got incentives in the form of additional profit sharing/split.

President Director of PT Pertamina Hulu Indonesia (PHI)-Regional Kalimantan, Chalid Said Salim, said that the provision of incentives is very important to promote the continuity of oil and gas operations and investment, that is essential to increase resource recovery of oil and gas in the East Kalimantan & Attaka WA.

He said that, “With this incentive, the existing and new field development plans are feasible. This incentive supports us to increasing reserves and maintaining PHKT’s production levels, with the intention of extending PHKT’s contribution in supplying energy for Indonesia.”

In 2021, PHKT recorded oil production figure of 9.3 thousand barrels of oil per day (MBOPD) and gas production of 40.2 million standard cubic feet per day (MMSCFD). PHKT will continue to strive for better performance in order to support the investment climate and national energy security, especially after receiving the government incentive.