Lhokseumawe City has been officially designated as the construction site for an Onshore Receiving Facility (ORF) for oil and gas processing from the Andaman Block, specifically from the Tangkulo 1 Well.
This strategic decision was announced during a coordination meeting attended by national and regional energy sector stakeholders at the Aceh Governor’s Office in Banda Aceh on Tuesday, July 15, 2025.
This classification represents a crucial step in boosting Aceh’s significance in the national oil and gas industry chain. The ORF development is expected to generate employment and promote infrastructure development in the northern part of the province, as well as provide investment opportunities.
Oil and gas sector management, according to Aceh Governor Muzakir Manaf, must be conducted in a way that is responsible, safe, and has a tangible impact on enhancing the well-being of the Acehnese people.
Lhokseumawe Mayor Sayuti Abubakar stressed the importance of involving local communities in this strategic project. “We ask that at least 80 percent of the permanent workforce at the ORF come from Lhokseumawe or the Aceh region,” he stated.
He added that they must be prepared early through technical training tailored to industry needs. “We encourage the implementing contractor to cover the costs of this training with the approval of SKK Migas.”
Sayuti emphasized that involving local labor is not merely an economic consideration, but also a social strategy to foster community ownership of the project. He cited the example of Block A in East Aceh, where local youth were sent to Cepu for training before being permanently employed by Medco.
At the same meeting, Sayuti also encouraged the participation of surrounding communities in various support roles, such as security units, catering services, cleaning crews, and other outsourced positions. He proposed that the recruitment process be conducted transparently by directly involving the Lhokseumawe City Investment and Manpower Office.
As part of the region’s readiness, the Lhokseumawe city government has designed a skills training program in the oil and gas sector, funded through the regional budget (APBK). This initiative aims to enhance the competitiveness of local workers so they can thrive in a highly demanding energy industry.
Sayuti further stressed the importance of involving local contractors and regional enterprises (BUMD), particularly PT Pembangunan Lhokseumawe (PTPL), in the Engineering, Procurement, and Construction (EPC) process. According to him, this synergy is vital not only for strengthening the local economy but also for ensuring smooth project execution on the ground.
Equally important, Sayuti highlighted the need for equitable and proportional management of Participating Interest (PI) in accordance with regulations from the Ministry of Energy and Mineral Resources (ESDM), to ensure the region benefits sustainably from its natural resource management.
President Director of Mubadala Energy Indonesia, Abdulla Bu Ali, also spoke at the forum and expressed appreciation for the support from local authorities. He affirmed the company’s readiness to work closely with all stakeholders to ensure the project’s success.
“We warmly welcome the spirit of collaboration shown by the Aceh provincial administration and the Lhokseumawe City administration. Mubadala is committed to ensuring the project runs smoothly and delivers lasting benefits for the community,” he said.
Aceh Governor Muzakir Manaf also emphasized in his remarks that the management of the oil and gas sector must be carried out responsibly, safely, and with tangible impact on improving the welfare of the Acehnese people.
The meeting additionally discussed plans to designate Lhokseumawe as a shore base location to support logistics for offshore oil and gas projects in the northern region. If realized, this move will further solidify Lhokseumawe’s position as a strategic energy-based economic growth center in Aceh.
//rri.co.id/en/archipelago/1652522/lhokseumawe-to-host-andaman-block-onshore-facility
