Vice Minister of Energy and Mineral Resources Arcandra Tahar at Insider Network Event at April 23 - Photo by MEMR

JAKARTA (TheInsiderStories) – Indonesian Government’s auction on oil and gas working areas bore few fruits. Two working areas, South Jambi B and Banyumas, sold among six offered in the second stage of 2018 auction, said one senior official government on Monday (22/10).

South Jambi B will be operated by Hongkong Jindi Group. It won a bid for offering US$60 million commitment and $5 million bonus. Meanwhile, Banyumas oil and gas production areas’s bid won by local company PT Minarak Berantas Gas, with $4 million commitment and signature bonus for $500.000.
By this, there are six oil and gas working areas total won in 2018 auction, added four in the first stage. Deputy Minister of Energy and Mineral Resources (EMR), Arcandra Tahar said, Indonesia’s oil and gas production can count on this working areas that just got new operators.
“We expected that the bid winners soon to finish the contract so they can produce sooner. But the most important thing we need is that contractors can increase production and find new oil reserves,” said Tahar.
He continued, Indonesia will also held more auction for four working areas lost in bid, South East Makasar, Andika Bumi, Makasar Strait, and Selat Panjang. The third stage of auction will be announced next week and closed by the end of the year.
As an alternative, government also planned to offer the unsold blocks to state-owned energy producer PT Pertamina. According to the ministry’s Director General of Oil and Gas Djoko Siswanto, Pertamina also stated interest on this blocks, but not yet submitting documents.
“We’ll discuss again, there is still a week time. Verbally, Pertamina mentioned its interest to do joint study. But it (the interest) must be written,” Siswanto said.
Other blocks that are recently in joint study process with Pertamina will also be auctioned in the next stage. So probably, there will be seven working areas production to be offered.
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