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PT Pertamina Hulu Energi Sulawesi Lavender officially signed a Production Sharing Contract for the Lavender Working Area with the Special Task Force for Upstream Oil and Gas Business Activities. The Lavender Working Area covers offshore and onshore areas in South Sulawesi, as well as offshore Southeast Sulawesi.
The signing of the Lavender WK PSC was carried out by the Director of PT Pertamina Hulu Energi Sulawesi Lavender, Ruby Mulyawan, and the Head of SKK Migas, Djoko Siswanto, in Jakarta on February 11, 2026, which was then followed by the signing by the Minister of Energy and Mineral Resources, Bahlil Lahadalia on March 17, 2026 as the initial milestone for the start of oil and gas exploration activities in the area.
The Lavender Working Area is the sixth new working area signed by a subsidiary of PT Pertamina Hulu Energi since 2023. This signing reflects PHE's commitment and aggressiveness in expanding its exploration portfolio to discover new oil and gas reserves in Indonesia. This step is also in line with the government's efforts to encourage increased investment in the energy sector, particularly in the upstream oil and gas subsector, as part of strengthening national energy security.
"National energy security is not an option, but a necessity. PHE stands at the forefront of ensuring oil and gas production remains stable, while preparing Indonesia's energy future," said Ruby.
The Lavender Working Area was acquired through the direct bidding mechanism of the Indonesia Petroleum Bidding Round (IPBR) Phase 2 in 2025. The Lavender Working Area PSC uses a Cost Recovery scheme with a contract term of 30 years. In this contract, PT Pertamina Hulu Energi Sulawesi Lavender was appointed as the operator, with a total working area of 8,206.95 km².
The total value of the firm commitment agreed upon in the Lavender WK PSC is USD 2.8 million, which will be realized through the implementation of Geological and Geophysical (G&G) Study activities, 100 km of 2D Seismic acquisition, and 200 km² of 3D Seismic within the first three years of the exploration period.
Prior to the signing of the PSC, the contractor has fulfilled all financial obligations in accordance with applicable provisions, including payment of a signature bonus of USD 200,000 and submission of a performance guarantee to the Government through SKK Migas.
PHE, as Pertamina's Upstream Subholding, will continue to invest in managing its upstream oil and gas operations and business in accordance with Environmental, Social, and Governance (ESG) principles. PHE is also committed to Zero Tolerance on Bribery by ensuring fraud prevention and ensuring the company is free from bribery. One of these is the implementation of the Anti-Bribery Management System (SMAP) which has been standardized by ISO 37001:2016. PHE continues to develop prudent and excellent operational management both domestically and internationally in a professional manner to realize the achievement of becoming a world-class oil and gas company that is Environmentally Friendly, Socially Responsible, and Good Governance.
Note: This story has not been edited by The Polymerupdate Editorial team and is auto-generated from a syndicated feed.
