DPR, E Kalimantan to maximize Mahakam block oil, gas potential

Samarinda (ANTARA) - The Indonesian House of Representatives (DPR RI) Commission XII and the East Kalimantan Provincial Government are working together to maximize the upstream oil and gas potential of the Mahakam Block for the welfare of local communities.

"This working visit by the national legislature is aimed at ensuring that the upstream oil and gas sector provides optimal benefits to the region," Head of the East Kalimantan Energy and Mineral Resources Agency (ESDM) Bambang Arwanto said in Samarinda on Tuesday.

The working visit to the operating facilities of PT Pertamina Hulu Mahakam focused on overseeing production operations and efforts to increase national oil and gas lifting capacity.

The central and regional governments share the same vision of accelerating well exploration and discovering new fields, which are urgently needed at present.

"Most of the Mahakam working area has been in operation for decades, so it requires continuous technical investment to maintain maximum productivity at an optimal level," he said.

Increasing the productivity of the oil and gas block is closely linked to fulfilling the rights of oil- and gas-producing regions to receive revenues in East Kalimantan.

A key strategic issue discussed at the meeting was the implementation of a 10-percent Participating Interest (PI) for oil and gas producing regions.

"The 10-percent participating interest is fully managed professionally through the role of regional-owned enterprise PT Migas Mandiri Pratama," he said.

The fulfillment of the participating interest has become an important instrument for driving local economic growth, with the benefits directly felt by local communities.

Stakeholders also sought to ensure regulations that support the smooth disbursement of Revenue Sharing Funds (DBH) from the oil sector.

"Both regional revenue instruments are essential for ensuring the smooth implementation of development programs and improving the welfare of our communities across the region," he said.

Strong synergy among the legislative and executive branches and industry players is expected to help maintain a conducive oil and gas investment climate in central Indonesia.

The presence of the national parliamentary delegation also reaffirmed the state’s commitment to sustaining the future energy industry in an environmentally responsible manner while empowering local communities.

"We remain committed to supporting innovative measures by Pertamina Hulu Mahakam so that we can continue to safeguard national energy sovereignty together," he said.

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Translator: Ahmad Rifandi, Katriana
Editor: Bayu Prasetyo
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