Auction Phase II/2023, Government Offers 3 Oil And Gas Working Areas

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) through the Directorate General of Oil and Gas announced the Offering of the Migas Phase II Working Area (WK) in 2023.

There are three oil and gas WKs offered, including Natuna D-Alpha which is located off the East Natuna Beach and has an area of 10,291 km2 with offers in the form of definite commitments for 5 years, GGRPE studies and 1 well.

Then the second WK is WK Panai which is located on land and off the coasts of North Sumatra and Riau covering an area of 5,180 km2 with a definite commitment for 3 years, G&G, and 1 well study.

While the third WK is the Patin WK located in the Riau, Jambi, and West Sumatra islands covering an area of 5,440 km2.

The exact commitment offered for 3 years, please G&G and Acquisition and Seismic Processing of 2D 250 Km. The offering mechanism is a regular auction.

Director General of Oil and Gas at Tutuka Ariadji said that the government is committed to developing the upstream oil and gas sector, and has made policies to facilitate and attract upstream oil and gas investors to invest in Indonesia.

Tutuka said that several regulations on Oil and Natural Gas laws were continuously discussed for improvements, one of which was provisions in the fiscal sector involving the Ministry of Finance to perfect the provisions contained in Government Regulation Number 27 of 2017 and Government Regulation Number 53 of 2017.

"This is expected to be able to create an investment climate that is more attractive to investors while still considering efforts to reduce carbon emissions, which is currently the concept of the international community," he said, quoted Wednesday, July 25.

Furthermore, Tutuka said, the improvement of the Gross Split Revenue Sharing Contract scheme to New Simplified Gross Split was also carried out, with the spirit of making improvements in the oil and gas management system to increase the investment climate.

Tutuka also 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 for Commitment to be 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 II Oil and Gas Working Area Auction.

The Regular Auction Schedule of the 2023 Phase II Oil and Gas Working Area Auction is as follows:

a. Access to Bid Document: starting July 25, 2023 to, November 21, 2023

b. Time Limit for Income of Participation Documents: 24 November 2023