Jakarta (VNA) - Indonesia's state-owned oil company Pertamina, along with foreign partners Sinopec from China and Kuwait’s Kufpec, has signed a contract to explore the Melati oil and gas block, located off the coast of Sulawesi. The block is estimated to contain trillions of cubic feet of gas reserves.
Pertamina Chairman Chalid Said Salim on October 21 highlighted that the exploration opens new opportunities in the region, potentially transforming Sulawesi into the next major oil and gas hub. The block is estimated to hold 850 million barrels of oil and 4.7 trillion cubic feet of natural gas.
Chalid announced that the partners have committed to an initial investment of at least 12.7 million USD during the three-year exploration phase, focusing on geological and geophysical studies.
Muhamad Arifin, Director of Pertamina Hulu Energi Sulawesi Melati, emphasised that exploration in Eastern Indonesia presents “new hope” for the country’s oil and gas sector. The Melati project will be developed through a transparent bidding process among contractors, ensuring fairness and optimal national profits while adhering to environmental regulations.
According to a report by S&P Global Commodity Insights, Sulawesi holds great potential for leading oil and gas production. Foreign companies from China and the European Union have expressed interest in signing exploration contracts with Indonesia to tap into these resources./.
