Home News Indonesia Inks US$16M Oil and Gas Blocks Auction

Indonesia Inks US$16M Oil and Gas Blocks Auction

Indonesia Energy and Mineral Resources ministry signed an agreement over the third stage of oil and gas blocks auction on Monday (02/18) with total values US$16.95 million - Photo by Pertamina

JAKARTA (TheInsiderStories) – Indonesia Energy and Mineral Resources (EMR) ministry just signed an agreement over the third stage of oil and gas blocks auction. The agreement was signed by Special Task Force for Upstream Oil and Gas Business Activities chief Dwi Sutjipto and the blocks contractors on Monday (02/18).

The agreement valued US$16.95 million which consists of $10.95 million projects commitment value and $6 million bonus signature.
From the bid held in Nov. 5 to Dec. 21, 2018, three of four blocks met the expected price.

Those are South Andaman block, South Sakakemang block, and Maratua block. Two blocks won by direct offers and one won by special direct offer to state-owned energy producer PT Pertamina.

The $2.15 million value South Andaman working area was won by Pearloil (Theralite) Ltd from middle eastern. Pearloil gets three years commitment for G&G and 500 kilometres square seismic 3D.

South Sakakemang block won by Dutch Talisman Java B.V. and Japanese Mitsui Oil Exploration Co. Ltd. The commitment value for the block is $3.05 million. It is for 3 years commitment of G&G and 250 kilometres square seismic 2D.

Meanwhile, Maratua block won by Pertamina. The block has the highest value of all, US$ 5.75 million. The oil and gas holding will have three years commitment is for G&G and 500 kilometers square seismic 3D.

Besides the blocks auction, Indonesian government also signed Sebatik block amendment agreement to change the scheme into gross split. Previously, the block scheme was using cost recovery sharing.

Sebatik block wide is 979.59 kilometers square. The contract was signed on Oct. 7, 2005, operated by Star Energy Sentosa (Sebatik) Ltd. By this agreement, it doesn’t change the contract period at 30 years.

“With this signing, total of 40 blocks using gross split. This further proves that oil and gas investment in Indonesia is attractive to investors,” said Deputy Minister of Energy and Mineral Resources Arcandra Tahar, after watching the agreement signing.

Indonesian government will have another oil and gas blocks offering coming up. In the next offering, Anambas block in Riau Island Province that wasn’t sold in the third stage auction, will be re-offered.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com