Jakarta – The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) has announced that it has secured a gas flow of 27 billion British thermal units per day (BBTUD) through a multi-party gas swap mechanism that will take effect on August 22, 2025.
Head of SKK Migas Djoko Siswanto said in a statement on Friday, August 22, that this swap scheme “ensures that additional supplies for domestic industrial needs are well maintained. Supply stability is secure, while international contracts continue to run according to agreement”.
The scheme brings together several key players in the oil and gas sector, including the West Natuna Supply Group (Medco E&P Natuna Ltd., Premier Oil Natuna Sea B.V., Star Energy (Kakap) Ltd.), South Sumatra Sellers (Medco E&P Grissik Ltd., PetroChina International Jabung Ltd.), PT Pertamina (Persero), PT Perusahaan Gas Negara Tbk (PGN), as well as two Singaporean companies, Sembcorp Gas Pte Ltd. and Gas Supply Pte Ltd.
Under the agreement, 27 BBTUD of gas from the West Natuna Gas Supply Group will be supplied to PGN. The gas flow will be facilitated by Medco E&P Grissik Ltd. and PetroChina International Jabung Ltd. using a swap arrangement so that domestic demand will remain secure even though the export contract remains in effect.
Not for new industries
Djoko reminded that this additional gas supply is not intended for new customer expansion, but rather to maintain existing industries to prevent energy shortages. “Oil and gas are non-renewable energy sources. If no new discoveries are made, they will eventually run out. Even though the success rate of exploration has increased from 10:1 to 10:3, the risk is still high, at around 70 per cent. Moreover, most gas discoveries are offshore, where exploration costs are very high,” he explained.
MedcoEnergi Director & Chief Operating Officer Ronald Gunawan expressed his full support for this initiative. “We are grateful for the coordination of SKK Migas and the cooperation of all parties. MedcoEnergi is also contributing to increasing gas supply from the South Sumatra Block to support national energy security,” said Ronald.
The government hopes that this swap scheme can serve as an example of how cross-sector coordination can maintain national energy sustainability. With this additional gas supply, domestic industries are expected to continue operating without concerns about fuel shortages, while international contracts remain honoured. (Hartatik)
Banner photo: Gary Bembridge/Wikimedia commons
