The Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas) together with the contractors are preparing an oil and gas tender worth of US$6 billion in this year - Photo by Indonesia Energy

JAKARTA (TheInsiderStories) – The Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas) together with the contractors are preparing an oil and gas tender worth of US$6 billion in this year to boost the productions. There are 1,482 procurement packages in the new lists and most of the tender will be completed in July 2021.

According to the secretary of the agency, Murdo Gantoro, the lists involved 46 contractors and was finalized in December 2020. The largest procurement will be carried out by PT Pertamina Hulu Mahakam (PHM) with total values up to $1.48 billion and followed its sister company, PT Pertamina EP with worth of $1.45 billion.

Head of SKKMigas, Dwi Soetjipto, hope with the higher oil prices will motivate the investors to invest more in the oil and gas sectors. Based on the official data, the realization investment in oil and gas projects throughout 2020 only $10.21 billion from the initial targets of $12.1 billion. This year, the unit of energy and mineral resources (EMR) ministry targeting the oil and gas investment to reach $12.3 billion.

Earlier, the government announced to auction 10 oil and gas working areas in this year, after canceled in 2020 due to the COVID-19 pandemic. The director general at the department, Tutuka Ariadji, said these blocks would be offer in stages and to attract the new investments the government give a flexibility in the contract scheme.

The oil and gas blocks through regular auctions are Merangin III South Sumatra blocks, Sekayu blocks (onshore), North Kangean blocks, East Java (offshore), Cendrawasih VIII blocks, Papua (offshore), and Mamberamo blocks in Papua (onshore and offshore).

Then, through direct offers are West Palmerah block, South Sumatra and Jambi block (onshore), Rangkas blocks, West Java and Banten blocks (onshore), Liman blocks, East Java blocks (onshore), Bose blocks in East Nusa Tenggara (onshore and offshore), and Maratua II block in North Kalimantan (onshore and offshore).

In accordance with the Minister Decree Number 12 of 2020 concerning concerning Gross Split Production Sharing Contracts, the oil and gas block contractors are allowed to choose to use a production sharing contract (PSC) scheme from gross split or at cost recovery. Its targeting the projects will be offered in the first or second quarter of 2021.

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