JAKARTA (TheInsiderStories) – Indonesian Energy and Mineral Resources (EMR) ministry announced 18 local and foreign companies accessing the bidding documents for oil and gas working area in the first phase of 2019. The government has offered oil and gas blocks since Feb. 21, and will close the action on April 24.
“Five blocks have 22 accesses from 18 multinational and national foreign and domestic companies,” Deputy Minister Arcandra Tahar told the press in Jakarta last week.
However, he is still reluctant to disclose the companies have participated in the auction. According to him, the gross split scheme offered at the oil and gas block auction is quite attractive to investors.
With this scheme, Tahar stated, the process of upstream oil and gas business activities becomes more transparent and faster than the previous contract scheme.
In the auction of conventional oil and gas working areas in phase I-2019, there are five blocks offered, consisting of two production blocks and three exploration blocks. Two production blocks, namely, the West Kampar Block located on the mainland of Riau and North Sumatra and the Long Strait Block in mainland Riau.
The last West Kampar block was produced on March 27, 2017, at 112 barrels of oil per day. The government sets a minimum signature bonus of US$5 million and a definite commitment of at least $64.43 million for the G&G Study, 2D Seismic 500 square kilometers, 3D Seismic 200 km2, and drilling of six exploration wells.
Meanwhile, the Long Strait Block is on the mainland of Riau. This block last produced on Feb. 21, 2018, amounting to 1 barrel of oil per day. The government sets a minimum signature bonus of $5 million with a minimum commitment of at least $62.99 million for G&G studies, 2D 500 km2 seismic, 3D Seismic 200 km2 and drilling of five exploration wells.
Then there are three explorations blocks auctioned, one of which is the Anambas Block off the coast of Riau Islands, with a minimum $2 million Signature Bonus and a minimum of definite commitments: G&G Study and drilling of one exploration well.
Next is the West Ganal Block off the coast of East Kalimantan, with a minimum $15 million Signature Bonus and a minimum of definite commitments: G & G Study, drilling three exploratory wells, 400 km2 3D Seismic and 2D Seismic 500 km2.
Finally, the West Kaimana Block on the mainland and offshore of West Papua with a minimum $2 million Signature Bonus and minimal definite commitment: G&G Study, drilling 1 exploration well and 2D Seismic 200 KM.
It is reported that the bidding schedule for conventional oil and gas working areas for the first phase of 2019 is access to bid document from February 25 to April 24, 2019. Entry of participation documents can be done no later than April 25, 2019.
The auction offers for Oil and Gas blocks is shown to Business Entities and Permanent Establishments of the upstream oil and gas industry that have financial and technical capabilities. They must be able to meet the minimum five-year definite work commitment or definite exploration commitment, and have a good performance and track record.
Written by Lexy Nantu, Email: email@example.com