Auction 6 WK Migas, KESDM Offers Revenue Sharing For Contractors Of Up To 50 Percent

Refinery illustration (Photo: antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) announced the auction of 6 Oil and Gas Working Areas in 2024 Phase II. This auction consists of 5 WK Migas direct bids and 1 WK oil and gas regular auction.

"With the offer of 6 Working Areas with a total potential of around 48 billion barrels of oil equivalent, the total becomes 11 Working Areas offered by the Ministry of Energy and Mineral Resources in 2024. Of course this is an extraordinary achievement. The Indonesian government continues to be committed to supporting upstream oil and gas activities in the country by improving oil and gas business management," said Plt. Director General of Oil and Natural Gas Dadan Kusdiana, Tuesday, December 3.

The details of the oil and gas WK offered are as follows:

1. WK Air Komering with an area of 4,109.79 km2 with a profit-sharing contract in the form of Cost Recovery / Gross Split. This WK has a minimum signature bonus of 300,000 US dollars with a regular auction offer mechanism. 2. WK Serpang with an area of 8,497.73 km2 as well as a contract for Cost Recovery results and a signature bonus of 300,000 US dollars. This WK is offered with a direct bid mechanism.3. WK Kojo with an area of 8,473.21 km2 and a contract for Cost Recovery results as well as a bonus signature of 200,000 US dollars. WK is offered with a direct bid mechanism.4. WK Gaea II with a region area of 8,483.92 km2 as well as a contract for Cost Recovery results and a signature bonus of 200,000 US dollars. WK is offered with a direct bid mechanism. 5. WK Gaea with a region area of 5,499.09 km2 as well as a contract for Cost Recovery results and a bonus signature of 200,000 US dollars. WK is offered with a direct bid mechanism.6. WK Gaea II with a region area of 6,773.77 km2 as well as a contract for Cost Recovery results and a signature bonus of 200,000 US dollars. This WK is offered with a direct offering mechanism.

Dadan explained that access to the 2024 Migas Working Area Auction Offer document has been opened on December 3, 2024, with the deadline for entering the bidding document for Regular Auctions is April 10, 2025, while the Live Offer Auction is January 17, 2025.

"The government invites investors and oil and gas companies who have the ability and commitment to meet the requirements to participate in this auction," he said.

Dadan also conveyed that the government's breakthrough in this WK auction was a larger profit sharing or split, and lower signature bonus requirements.

"The distribution of the proceeds or splits for the contractors offered reached 45-50 percent. Previously it was around 15-30 percent," explained Dadan.

Furthermore, Dadan conveyed that the required signature bonus was also relatively much lower, which ranged from 200,000 to 300,000 US dollars.

"This is also lower than the previous times," said Dadan.