PGN Saka Signed Contract for Sangkar Block Operatorship



Saka Energi Indonesia (PGN Saka) as an affiliate of PGN Subholding Gas Pertamina, just signed the contract for Sangkar Block Operatorship with the Government. The signing of Sangkar Block contract is the result of Phase II Direct Bid 2022 auction between SKK Migas and PGN Saka, witnessed by the Director General of Oil and Gas Mr. Tutuka Ariadji in Jakarta, Tuesday 30 May 2023.


PGN Saka is assigned to explore and exploit oil and gas in Sangkar Block through PT Saka Eksplorasi Timur with an area of 8,122.58 square kilometers with a total Firm Commitment investment for the first three years of exploration is USD 3 million which includes G&G study activities, acquisitions and processing of 150 square kilometers of 3D seismic data. Sangkar Block is located offshore and onshore around East Java and Central Java. Estimated 130 MMBO of oil resources and 300 BCF of gas at Sangkar Block are expected to increase the company’s portfolio and also for the country


“The Indonesian government strives to support the exploration and development of upstream oil and gas activities by continuing make improvements in the oil and gas management system so we keen to increase investor’s trust in investing,” said Tutuka.


Sangkar Block’s prospect and lead locations are located in the Offshore area and adjacent to the Pangkah Block’s prospect area which is currently 100% operated by PGN Saka. The process in acquiring Sangkar Block was obtained through a Direct Offer mechanism which began with an evaluation of the Joint Study between PGN Saka and the Government. Then PGN Saka participated in Direct Bid of oil and gas block auction before finally being awarded to PT Saka Eksplorasi Timur on February 22, 2023.


“SKK Migas fully supports Contractors’ efforts in managing blocks and we will accelerate the exploration process,” said Dwi Soetjipto as Head of SKK Migas



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