EWC claims that the Director General of Migas has provided Energy Equity Epic Sengkang (EEES) – A 100% owned subsidiary of EWC – with the official confirmation letter that it has been awarded the production sharing contract (PSC) extension.
The terms of the extension agreement are as follows:
- Term: PSC extension of 20 years, starting in October 2022 and ending in October 2042.
- Signature bonus: US$12 million.
- Five-year development commitment starting from October 2022: US$88 million supported by a bank guarantee of 20%, i.e. US$8.8 million.
- Local partner: In line with new government regulations to encourage the involvement of local companies, EEES will enter into a business-to-business arrangement with a suitably qualified local Indonesian venture partner, to be approved by SKKMigas, within six months.
Brian Allen, Executive Director of EWC, said: “We are delighted with this result. We have been approached by a number of potential Indonesian ventures partners and look forward to finalising arrangements over the coming months. We will continue to operate the Sengkang gas field and power plant under the existing contracts, and with this extension in place, we will be in a position to commence discussions on other contracts for the monetisation of this gas field beyond 2022, together with providing increased reserves for our LNG facility.”
The Chairman and CEO of EWC, Stewart Elliott, added: “We are very grateful for the support of the Indonesian Government Local Government in Sengkang and SKKMigas and the confidence they have shown in us by awarding this extension. EWC has been operating successfully in Indonesia for more than 20 years, and we look forward to continuing our relationship with the Government and people of Indonesia through until at least 2042 and beyond. This extension will provide benefits to the Government, the Indonesian people and contribute to employment and economy in the region. The extension will provide EWC with an enhanced platform to fulfil our vision to bring affordable electricity, city gas, gas for industrial uses and LNG to the people of Indonesia. The Sengkang PSC is a large gas field which we look forward to developing to its full potential.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/30112018/ewc-awarded-20-year-production-sharing-contract-extension-for-sengkang-gas-field/