Award of Oil and Gas Working Areas (Image credit : Energy and Mineral Resources )Ministry

JAKARTA (TheInsiderStories) – The Energy and Mineral Resources Ministry on Wednesday (31/01) announced the winners of the conventional oil & gas Working Areas or block auction. This was the first auction of Working Areas to be offered based on the much-debated gross-split production sharing scheme or ‘gross split PSC’, instead of the cost recovery-based PSC applied previously.

The auction process began in May last year, when the Energy and Mineral Resources Ministry offered 10 WKs. The deadline or document submissions were delayed four times as the energy ministry waited for the issuance of a revised tax scheme for the gross-split PSC.

The government set a final date for document submission as Dec. 29 2017. Until the last day, the Ministry had only received seven bid documents, bidding for 5 Working Areas.

The above Working Areas were offered through direct offers.The documents were then assessed and evaluated by the Final Assessment Team before deciding the winners.

Following is the list of the winners for the 5 Working Areas:

1. Mubadala Petroleum (SE Asia) Ltd was awarded as the winner for Andaman I Working Area. Mubadala was the only bidder for the Working Area

2. Consortium of Premier Oil Far East Ltd-KrissEnergy (Andaman II) BV-Mubadala Petroleum (Adaman II JSA) Ltd has been selected as the winner for Andaman II.Three participants were interested in the block. The other two were Repsol Exploracion SA and PT Energy Mega Persada Tbk.

3. PT Tasri Madjid Energi was awarded as the winner for Merak-Lampung Working Area.  The company was the only bidder for the Working Area.

4. PT Saka Energi Sepinggan, a subsidiary of PT Saka Energi, was awarded as the winner for two Working Areas, namely Pekawai Working Area, and West Yamdena Working Area.

The Energy Ministry said no participants were interested in the South Tuna Working Area.

In addition to the above Working Areas, there were four other Working Areas that failed to attract the interest of bidders, namely, Kasuri III, Tongkol, East Tanimbar and Memberamo Working Areas.

These Working Areas were offered through a regular tender process.

The Energy and Mineral Resources Ministry said the five winners are committed to invest US$23.58 million to carry out exploration. The government receives US$3.25 million in a signature bonus.

The ministry said the Working Areas that failed to attract bidders will be offered in the next round of oil and gas Working Area auctions.Deputy Minister for Energy and Mineral Resources Arcandra Tahar said the Ministry plans to auction 25-40 new Working Areas this year.

He expects more and more participants will be interested in the next auction, as participants should have a better understanding of the gross-split PSC scheme.

Written by Staff Writer, Edited by Roffie Kurniawan, email: roffien@theinsiderstories.com

 

 

 

 

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