South Sulawesi renegotiates oil and gas stake to 10%

The South Sulawesi Provincial Government and the Wajo Regency Government have successfully renegotiated the Participating Interest (PI) for the Sengkang oil and gas working area. The agreement increases the local government's stake from 2.5 percent to 10 percent.

The renegotiation was facilitated by the Directorate General of Oil and Gas (Ditjen Migas) of the Ministry of Energy and Mineral Resources (ESDM) and SKK Migas in Jakarta. South Sulawesi Governor Andi Sudirman Sulaiman expressed appreciation for the central government's support, noting that the increased stake provides a vital new source of regional revenue amid budget efficiency policies.

To implement this change, the Wajo Regency Government is working to prepare its Regional Owned Enterprise (BUMD) to manage the interest. This includes completing personnel requirements, transitioning the business entity from a limited liability company to a regional-owned enterprise (Perseroda), and establishing a subsidiary to manage the PI.