Newly Opened, Multinational Company Eyes Migas WK Auction

Illustration (Photo: Doc. Antara)

JAKARTA - The government has officially auctioned off six oil and gas working areas (WK) in the first phase of the 2022 bidding.

The WK which is offered through a joint study and regular auction mechanism also attracts the interest of multinational companies.

"There are multinational companies (as participants) in the direct offer/joint study auction. We will announce it around September," said Director General of Oil and Gas Tutuka Ariadji to the media, Friday, July 22.

In this phase I oil and gas WK bidding, the Government auctioned three CAs through direct bidding, namely the Bawean WK (exploitation CA) and two exploration CAs, namely the Offshore North West Aceh (Meulaboh) CA, and the South West Aceh (Singkil) Offshore WK.

Access to the Bawean WK bid document starts on July 20, 2022 until August 19, 2022 and the deadline for submitting participation documents is August 23, 2022.

As for WK Offshore North West Aceh (Meulaboh) and WK Offshore South West Aceh (Singkil), access to bid documents starts from July 20, 2022 to September 2, 2022, while the deadline for submitting participation documents is September 6, 2022.

Tutuka hopes that this oil and gas WK auction will attract many investors, both domestic and foreign.

To make it more attractive to investors, the Government has also changed the terms and conditions including improving the contractor's profit split by considering the WK risk factors, signature bonus open to bidding, FTP to 10 percent shareable, application of 100 percent DMO price during the contract, providing flexibility in the form of the contract (PSC Cost). Recovery or PSC Gross Split).

In addition, new provisions for reinquishment (no refund of part of the area in the 3rd year of contract), ease of data access through the Migas Data Repository (MDR) membership mechanism and the provision of incentives and tax facilities according to applicable regulations.

"We will change the (terms and conditions) to make it more attractive. As for taxes, we will open a discussion later," said Tutuka.

Against these changes, he continued, there are already positive signals.

However, the government remains open to discussions so that more investors are interested in investing in Indonesia.