TEMPO.CO, Jakarta-The Ministry of Energy and Mineral Resources will be offering 14 oil and gas blocks to investors. Most of the work areas are located in eastern Indonesia.
"We are offering a new scheme," I Gusti Nyoman Wiratmaja, the Energy Ministry's director general of oil and gas, said in Jakarta Monday, July 18, 2016.
The work areas offered through regular auctions are South CPP, Suramana I, South East Mandar, and North Arguni. The Energy Ministry of Energy is also offering direct exploration in the West Hill Block, Batu Gajah Dua Block, Kasongan Sampit Block, as well as Ampuh, Ebuny, Onin, and West Kaimana blocks.
The ministry is also offering non-conventional work areas such as the coal bed methane concessions Bungamas and Raja, as well as the Batu Ampar shale gas area.
In the new concept, the government is offering investors to manage the working areas using an open bid split scheme based on contractors' proposals. For non-conventional work areas, contractors can also get a sliding scale scheme, whereas the amount is calculated based on daily production.
Seven work areas are being offered directly to companies and the rest is offered through open biddings. Investors can access the bidding documents starting from July 18 until August 22, 2016. The regular auction is open until October 28, 2016.
The ministry is also preparing six new working areas for the second phase auctions.
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