Energy and Mineral Resources Minister Ignasius Jonan and Other Officials - Photo by MEMR Office

JAKARTA (TheInsiderStories) – Indonesia granted three new oil and gas contracts to local and foreign investors in the latest auction. The government received a US$10.95 million investment and commitment $6 million for the auctioned of the four blocks offered.

The South Andaman block was won by Thailand’s Pearl Oil Ltd., while South Sakakemang taken by consortium of Dutch company Talisman Java B.V. and Japan company Mitsui Oil Exploration Co. Ltd. The other one, the Maratua block grabbed by Indonesia’s state-own enterprise PT Pertamina with special direct offering.

The Maratua block has the most expensive investment value of $5.75 illion. Then, the South Sakakemang block commitment value is US$3.05 million and the South Andaman block is US$2.15 million. According to ministry regulation, the blocks will use gross split production sharing contracts. The unsold block, Anambas, will be offered in 2019.

On Thursday (12/27), the Deputy Minister of Energy and Mineral Resources (EMR) Arcandra Tahar revealed that there were 36 oil and gas contractors has implementing the gross split scheme for the end of 2018, with a significant increase in oil and gas investment commitments.

He also conveyed the decision to manage the 2023 termination of oil and gas blocks, namely Rimau block, which was operated by PT Medco E&P by using a gross split contract scheme.

In total, there are 14 exploration blocks, 21 regular blocks and 1 amendment block that have switched to using gross split systems. Of the 36 blocks, the Government has pocketed oil and gas investment amounting to $2.13 billion and a hand bonus of $895.4 million.

“In 2018, the exploration block has sold nine, in 2017 it sold five. In 2016 and 2015 it sold zero,” said the vice minister.

Email: linda.silaen@theinsiderstories.com

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The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.

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