Aceh, SKK Migas Agree to Revise Tengkulo Gas Field Development Plan

BANDA ACEH | INDATANEWS.COM – The provincial government of Aceh and Indonesia's upstream oil and gas regulator SKK Migas have reached a key agreement to revise the development plan for the Tengkulo gas field in the South Andaman working area. Both sides have committed to updating the Plan of Development (PoD) to ensure a more strategic and balanced project implementation.

Aceh Governor Muzakir Manaf, widely known as Mualem, and SKK Migas Head Djoko Siswanto agreed that the existing development scheme requires adjustments. The revision is aimed at aligning investment considerations with regional development priorities.

"The revised PoD submitted by us is being taken into consideration," said Aceh government spokesperson Dr. Nurlis Effendi on Thursday (June 11, 2026) in Jakarta.

Intensive Talks Held in Jakarta

The discussions took place on Wednesday evening (June 10, 2026) at the SKK Migas office in Jakarta, with Governor Mualem accompanied by senior officials, including Regional Secretary M. Nasir Syamaun, special advisor Teuku Irsyadi, provincial energy expert Akhyar, and spokesperson Nurlis Effendi.

During the meeting, both parties reviewed the Tengkulo gas field development plan in detail. The Aceh government reiterated its support for investment activities, including those involving Mubadala Energy, while emphasizing the need for adjustments to maximize regional benefits.

Aceh's Position on Development Strategy

According to Nurlis Effendi, Governor Mualem does not oppose the project. Instead, the provincial government supports the investment but insists on structural refinements to prevent potential regional disadvantages and to enhance economic returns.

"There are several points in the PoD that must be improved so Aceh does not suffer losses," Nurlis stated.

FPSO Scheme and KEK Arun Proposal

The current PoD envisions processing gas and condensate from the Tengkulo field through a Floating Production Storage and Offloading (FPSO) facility before transporting output via an undersea pipeline to an Onshore Receiving Facility (ORF) in the Arun Special Economic Zone (KEK Arun).

However, the Aceh government has proposed an alternative approach: transporting gas directly to shore for processing in an onshore facility within KEK Arun.

"The gas should be brought directly onshore to be processed in an onshore facility," Nurlis explained.

Economic Impact for Aceh

The provincial government argues that an onshore processing model would generate significantly greater economic multipliers. Downstream industries such as petrochemicals, fertilizers, logistics, and supporting services are expected to benefit.

An onshore configuration is also projected to create substantially more local employment opportunities compared to offshore-based facilities.

"An onshore plant can employ far more local workers than an isolated offshore structure," Nurlis added.

Discussion on Alternative Models Continues

The meeting also referenced similar projects where offshore development plans were later shifted to onshore systems. SKK Migas acknowledged that such adjustments have been implemented in previous developments.

It was also revealed that SKK Migas had initially planned a press conference regarding developments in the Andaman Block, but it was postponed at the request of the governor until the PoD revision is finalized.

"Governor Mualem will determine the right time once all processes are completed and clear to the public," said Nurlis.

Final Agreement Still in Progress

Both parties agreed that an official press briefing will only be held after the PoD revision receives final approval, ensuring that public communication is based on complete and verified information.

Negotiations over the Tengkulo gas field in the Andaman Block are therefore ongoing, with the shared goal of balancing investment certainty with regional economic benefits. (IDNC)

REPORTER: Adli Safwan | EDITOR: Fik Sagala

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