Indonesian Energy Ministry to Auction 12 Oil and Gas Blocks This Year
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19 January 2022 22:25 WIB
TEMPO.CO, Jakarta - The Energy and Mineral Resources Ministry is offering 12 oil and gas blocks or working areas a.k.a. oil and gas blocks in 2022. The offers come with contract flexibility in a bid to revive upstream oil and gas business activities.
"In 2022 we will prepare for the auction of 12 oil and gas work areas," the ministry's director-general of oil and gas, Tutuka Ariadji, said in a press conference on Wednesday, January 19.
The number of blocks for auction is lower than in 2021 when 14 work areas were auctioned—exceeding the target of 10.
This year, the government offers flexibility in the contracts of work (CoW) for the auctioned areas, namely cost recovery or gross split, as set forth in Energy Minister's Regulation no. 12/2020.
In 2021, Ariadji said, the auction of conventional oil and gas blocks was carried out in two phases. In phase I on June 17, 2021, six work areas were bid-out WK. In phase II, November 29, 2021, eight work areas were auctioned off.
"From the first bidding phase, bid winners had signed the CoW for two work areas; Liman and South CPP," Ariadji said.
The Oil and Gas Directorate continues to improve the form of the main provisions of the cooperation contract in order to attract more investments.
Read: Indonesia Needs US$187bn Upstream Investment to Boost Oil, Gas Production
M. Faiz Zaki
