Govt Auctions 15 Oil, Gas Blocks in August
6 August 2015 13:44 WIB
TEMPO.CO, Jakarta - The Indonesian government will open the bid for 15 oil and gas blocks management contracts beginning in August 2015.
I Gusti Nyoman Wiratmadja, director general of oil and gas at the Ministry of Energy and Mineral Resources, said that for the month of August eight conventional work areas will be offered to investors.
"All will be offered through an auction system," he told Tempo on Wednesday, August 5.
Five of the eight conventional blocks will be offered through a regular auction mechanism. The projects are West Asri, Offshore Lampung; Oti, Offshore Kalimantan Timur; Rupat Labuhan, Offshore Riau and North Sumatera Utara; Kasuri II, Onshore Papua; and North Adang, West Sulawesi Offshore.
Next month, seven non-conventional areas will be auctioned.
To attract investor, the Energy Ministry is formulating a rule on oil and gas agreements as an alternative for the commonly-used PSC (production sharing contract). The PSC is estimated to attract few investors given the current oil price decline.
The options available are a split gross contract or a sliding scale, through which operating cost reimbursements will no longer be borne by the government.
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