Indonesia offers 14 blocks to investors with new scheme

JAKARTA (TheInsiderStories) - Indonesia government offered 14 oil and gas blocks-mostly located in eastern Indonesia-to investors with a new scheme, I Gusti Nyoman Wiratmaja, the Energy Ministry’s director general of oil and gas said on July 18.

In the new concept, the government is offering investors to manage the working areas using an open bid split scheme based on contractors’ proposals. Investors may bid for the signature bonus and split the revenue share.

For non-conventional work areas, contractors can also get a sliding scale scheme, whereas the amount is calculated based on daily production. The auction winner will be determined based on the best offers of the exploration commitment, signature bonuses and deals for sharing according to the economic level (owner estimate) that are listed in the terms and conditions set by the government.

“The contract based on a cooperation contract or contracts for the results. This scheme is intended to stimulate investment in upstream oil and gas fields and to optimize the benefits for the country,” He said.

The work areas offered through regular tender are South CPP, Suramana I, South East Mandar, and North Arguni. The ministry is also offering direct exploration in the West Hill Block, Batu Gajah Dua Block, Kasongan Sampit Block, as well as Ampuh, Ebuny, Onin, and West Kaimana blocks.

The ministry is also preparing six new working areas for the second phase auctions. He added, government is also offering non-conventional work areas such as the coal bed methane concessions Bungamas and Raja, as well as the Batu Ampar shale gas area.

Seven work areas are being offered directly to companies and the rest is offered through open biddings. Investors can access the bidding documents starting July 18 until August 22, 2016. While, the regular auction is open starting July 18 until October 28, 2016.

LIST OF WORKING AREAS TO OFFERS :

NO	WORKING AREAS	LOCATION	INFORMATION
1.	Bukit Barat	Offshore Riau Islan	Direct Tender
2.	Batu Gajah Dua	Onshore Jambi	Direct Tender
3.	Kasongan Sampit	Onshore Central Kalimantan	Direct Tender
4.	Ampuh	Offshore Java Sea	Direct Tender
5.	Ebuny	Offshore Southeast Sulawesi	Direct Tender
6.	Onin	Onshore-Offshore West Papua	Direct Tender
7.	West Kaimana	Onshore-Offshore West Papua	Direct Tender
8.	South CPP	Onshore Riau Island	Regular Tender
9.	Suremana I	Offshore Makassar Strait	Regular Tender
10.	SE Mandar	Offshore South & West Sulawesi	Regular Tender
11.	North Arguni	Onshore West Papua	Regular Tender
12.	Kasuri II	Onshore West Papua	Regular Tender
13.	Manakarra Mamuju	Offshore Makassar Strait	Regular Tender
14.	Oti	Offshore East Kalimantan	Regular Tender