JAKARTA (TheInsiderStories) – Indonesia’ government began opening an auction for the special mining business license area in the Suasua block, Southeast Sulawesi for the next 20 days. The main commodity of the block is nickel, the ministry of energy and mineral resources announced on Monday (07/8).
The auction implementation refers to the energy minister decree number 24K/30/MEM/2019 concerning an amendment to decree number 1798K/30/MEM/2018 concerning guidelines for implementation, preparation, determination and giving of mining business license areas and special mineral mining business permits and coal.
The Suasua block auction is one of the two priority areas in this year’s auction. Another area is Latao block, which also owns nickel reserves and is located in North Kolaka, Southeast Sulawesi.
The Suasua block which is still in the exploration stage has an area of 5,899 hectares (ha) with compensation value for information data reaching Rp984.85 billion (US$69.35 million). Meanwhile, the Latao block which is still in the exploration phase has an area of 3,148 ha with a value of Rp414.8 billion.
Both are used mining blocks of PT Vale Indonesia Tbk (IDX: INCO). The company released a number of mining blocks after amending the contract in October 2014.
The ministry, previously, announced that it would offer four oil and gas working areas in the second round of the oil and gas block action, which would be open until July 31.
The government also have announced Kufpec Ventures Ltd. and Sonoro Energy Ltd – PT Menara Global Energi consortium as the winner of five 2019 phase I oil and gas block offers total commitment value and the signature bonus of US$116.7 million.
According to the energy deputy minister Arcandra Tahar, the two winners of the tender will operate respectively for the Anambas and Selat Panjang blocks.
Kufpec Ventures will get a definite three-year exploration commitment, which includes G&G study, Seismic 3D 600 km2 (re-processing and licensing purchase) and 1 Well, with a total bonus of $2.5 million and a definite commitment of $35.2 million.
While Sonoro Energy Ltd – PT Menara Global Energi’ consortium will get a definite commitment of $74 million and a signature bonus of $5 million for a definite 5-year work commitment. The total investment value of certain commitments from the two blocks is $109.2 million and the total signature bonus is $7.5 million.
The Selat Panjang block itself is located in mainland Riau province which in February 2018 produced 1 bopd, while the Anambas block was located off the Riau Islands coast.
Meanwhile, Tahar said that the other three blocks had not been won from four companies. The three oil and gas blocks are the West Kampar block, West Ganal block, and West Kaimana block.
The West Ganal block is located off the coast of East Kalimantan. The government has promised a minimum signature bonus of $15 million and a minimum of definite commitments.
While the West Kampar Block is located in mainland Riau and North Sumatra which on March 27, 2017, produced 112 bopd, with a minimum bonus signing of $5 million, and minimum commitments and drilling of six exploration wells worth minimum of $64.43 million.
Then, West Kaimana block is located on land and off the coast of West Papua. For blocks in the eastern end of Indonesia, the government budgeted a minimum signature bonus of $2 million and a minimum of definite commitments.
Written by Lexy Nantu, Email: email@example.com