Auction 3 WK, Government Gives Interesting Offers To Attract Investors

Illustration of the refinery (Photo: Doc. Antara)

JAKARTA - The Directorate General of Oil and Gas (Ditjen Migas) announced the Offering of Phase I Oil and Gas Working Areas in 2023 for 3 working areas (WK) namely WK Akia, WK Beluga and WK Bengara I.

Untuk menarik investor, Direktur Jenderal Minyak dan Gas Bumi Tutuka Ariadji mengatakan pihaknya juga memberikan penawaran menarik.

"The Indonesian government is committed to supporting the development of upstream oil and gas activities in the country, by continuing to improve in the oil and gas management system so that it can increase investor confidence in making investments," said Tutuka at a press conference in Jakarta, Monday, April 10.

He detailed that some of these attractive offers include improvements in sharing splits of up to 50 percent, First Tranche Petroleum (FTP) of 10 percent sharedable, Signature Bonus is open bid.

"Furthermore, the Revenue Sharing Contracts in the three Working Areas use the Cost Recovery scheme according to the proposal of the Business Entity and the Implementing of Joint Studies, where this Contract also includes Conventional and Non-Conventional Oil and Gas Entrepreneurships," he continued.

Then the DMO price is 100 percent ICP, there is no obligation to return some of the work areas during the first three years, no cost selling for Cost Recovery and finally, easy access to data packages through membership mechanisms.

Tutuka added, in addition to some of these basic provisions, Contractors will also obtain tax facilities in accordance with applicable regulations, and if there are economic problems, Contractors can also apply the incentives needed for field development.

"The government invites Business Entities and Permanent Business Forms that are engaged in the upstream oil and gas industries that have financial and technical capabilities, are able to meet the minimum requirements of Commitment for sure, meet the main requirements and provisions of the Work Area Auction, and have good performance and track records to be able to participate in the 2023 Phase I Oil and Gas Working Area Auction," concluded Tutuka.