Oil and Gas Block - Photo by Pertamina

JAKARTA (TheInsiderStories) – Indonesia’ government opened regular bidding for four third-stage conventional oil and gas blocks in 2019 which was open to all business entities, the energy and mineral resources (EMR) ministry announced on Friday (07/26). The four blocks are East Gebang block, West Tanjung I block, Belayan I block and Cendrawasih VII block.

Deputy Minister of MEMR Arcandra Tahar, said the third phase of the regular auction strategy was different from the second and first stages of oil and gas block auction 2019.

“We asked the director general of oil and gas to come to prospective contractors who are interested in the block that we will offer,” he said, in the announcement of the third phase of conventional oil and gas block 2019 in Jakarta.

That way, the government hopes that before the working area is offered, it has received a response regarding the attractiveness of the oil and gas block.

“Investors want to look deeper and later be able to participate in the blocks offer, which if interested will enter the offer,” he added.

East Gebang block, the location is offshore North Sumatra with an area of ​​4,213.93 kilometers. The ministry installed the minimum value of a definite exploration commitment for the first three years US$2.5 million. The same commitment also charged for West Tanjung I block, located onshore Central Kalimantan with an area of ​​5,459.15 kilometers.

Then Wayan Belayan I block, located on East Kalimantan with an area of ​​5,276.28 kilometers and Cendrawasih VIII block, located off Papua with an area of ​​5,612.42 kilometers.

“The form of the production sharing contract and the terms and conditions have been established. In the process, the ministry has obtained consideration. The scheme used is gross split,” said acting director general at the ministry Djoko Siswanto at the same place.

At the second phase of the auction, there were 12 companies involved. The number increased from the previous nine companies.

The government sets the auction period for second conventional oil and gas from 8 May to 31 July 2019 and the clarification process starts 13 May-2 August 2019. The government closes the auction document access on 5 August 2019.

In the second phase auction, the government offered four oil and gas blocks, consisting of two oil and gas blocks who did not get the first stage winner, West Ganal block and West Kampar block, and two new oil and gas blocks, Kutai and Bone blocks.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com