Government Auctions Six Oil And Gas Block Areas To Investors

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji. (Photo: ANTARA)

JAKARTA - The government through the Ministry of Energy and Mineral Resources has again opened the 2022 Conventional Oil and Gas Working Area Auction.

The number of Oil and Gas Working Areas (WK) offered is six CAs, consisting of one Exploitation CA with a Direct Offer mechanism, two Exploration CAs with a Direct Offer mechanism and three Exploration CAs with a Regular Auction mechanism.

"The government invites Business Entities and Permanent Establishments engaged in the upstream oil and gas industry that have financial and technical capabilities, are able to meet the minimum requirements for definite commitments, meet the main terms and conditions of the Working Area Auction, and have good performance and track record to be able to participate in the auction. Auction for the Conventional Oil and Gas Working Area Phase I in 2022," said Director General of Oil and Gas Tutuka Ariadji at the Announcement of the Auction for the Phase I Oil and Gas Working Area for 2022, Wednesday, July 20.

Tutuka added that more attractive terms & conditions will be applied in this auction, namely, improvement of the Contractor's profit split by considering WK risk factors, Signature Bonus open to bidding, FTP to 10 percent shareable.

Then, the application of a 100 percent DMO price during the contract, providing flexibility in the form of the contract (PSC Cost Recovery or PSC Gross Split), new reinquishment provisions (no refund of part of the area in the 3rd year of the contract), ease of data access through the Migas Data Repository membership mechanism (MDR) as well as providing incentives and tax facilities in accordance with applicable regulations.

For Exploitation Work Areas offered with the Direct Offer mechanism are:

Bawean is located off the coast of East Java with an area of 2,756.07. Then the GGRE commitment, 1 development well, 2 workover wells, construction of production facilities, commitment to start production in the first year of the contract. Then the commitment of G&G exploration, acquisition and processing of 300 Km2 3D seismic.

For Bawean, a direct offer is made with access to Bid Documents starting on July 20, 2022 - August 19, 2022. Then the deadline for submitting participation documents is August 23, 2022.

Then two Exploration Work Areas are offered with a Direct Offer mechanism.

Meanwhile, the Offshore North West Aceh (Meulaboh) work area is located off the coast of Aceh and has an area of 9,182 with a minimum definite commitment of G&G, 500Km2 3D seismic acquisition & processing, drilling 1 Exploration Well.

Then, offshore South West Aceh Singkil, Offshore Aceh with an area of 10,700 with a minimum definite commitment of G&G, acquisition & processing of 500 Km2 3D seismic, drilling of 1 exploration well.

For Offshore North West Aceh and Offshore South West Aceh, access to bid documents starts from 20 July 2022 to 2 September 2022 and the deadline for submitting participation documents is 6 September 2022.

Furthermore, there are 3 exploration work areas offered with the Regular Auction mechanism. Arakundo is located on Mainland and Offshore Aceh with an area of 7713.16 Km2, Bengara I mainland North Kalimantan with an area of 922.17 Km2, Maratua II is located Offshore Makassar Strait 7,579.67 Km.

Meanwhile, for regular auctions, access to bid documents starts on 20 July 2022-15 November 2022. The deadline for submitting participation documents is 17 November 2022.

"For business entities and permanent establishments who are interested, registration and access to Bid Documents are carried out through the online auction website for the Oil and Gas Working Area according to the schedule at https://esdm.go.id/wkmigas," he concluded.