The government has announced the Oil and Gas Working Area Offer Phase I Year 2024 at the opening ceremony of the 48th IPA event at ICE BSD City, Tangerang, on Tuesday, May 14, 2024.
The government through the Ministry of Energy and Mineral Resources offered five oil and gas Working Areas consisting of two Regular Auction Bid Working Areas and three Direct Offer Working Areas, with the following details:
- Pesut Mahakam block located in mainland East Kalimantan Province with an area of 1,530.15 square kilometres.
The contractor must have a 3-year firm commitment to conduct : G&G, Acquisition and processing of 3D Seismic Data 114 Km2.
Mechanism: Regular Bidding* - Panai block located in the Onshore and Offshore of North Sumatra Province and Riau Province with an area of 5,180.46 sq km.
The contractor must have a firm 3-year commitment to conduct: G&G, 500 Km 2D Seismic Data acquisition and processing.
Mechanism: Regular Tender
Central Andaman Block located in the Offshore Andaman Sea with an area of 698.49 sq. km.
The contractor must have a firm commitment of 3 years to conduct: G&G, Acquisition and processing of 3D Seismic Data or purchase of 3D Seismic Data of minimum 650 Km2 and Advance reprocessing of 3D Seismic.
Mechanism: Direct Bid Auction
Amanah Block located in South Sumatra mainland with an area of 1,753.15 sq km. The contractor must have a firm commitment of 3 years to conduct: G&G, Acquisition and processing of 50 Km2 3D seismic data.
Mechanism: Direct bidding auction
Melati Block located in onshore and offshore Central Sulawesi Province and Southeast Sulawesi Province with an area of 8,453.70 square kilometers. The contractor must have a firm commitment of 3 years to conduct G&G, Acquisition and processing of 250 Km 2D seismic data onshore and Acquisition and processing of 3D seismic data 200 Km2 offshore.
Mechanism: Direct bidding auction
On the occasion, Acting Director General of Oil and Gas at the ESDM ministry,Dadan Kusdiana, said that the government through the ESDM ministry continues to strive to improve the upstream oil and gas investment climate by creating the main provisions of the Cooperation Contract in the auction of attractive Oil and Gas Working Areas, as well as providing both fiscal and non-fiscal incentive facilities. These facilities can be received by contractors by referring to several existing regulations and Ministerial Decrees.
Regarding the improvement of the upstream oil and gas investment climate, Dadan further said that in the span of 2020 to 2024, there were 26 Cooperation Contracts for Oil and Gas Working Areas that had been signed, both new Cooperation Contracts resulting from auctions and Cooperation Contracts for Extension / Transfer of Management.
“Twenty of them are the signing of new Cooperation Contracts resulting from auctions and the remaining six are the signing of Cooperation Contracts Extension / Transfer of Management. This figure is certainly a positive indicator that upstream oil and gas business activities in Indonesia are still attractive to investors,” he said.
Furthermore, Dadan invited Business Entities and Permanent Establishments (BU/BUT) engaged in the upstream oil and gas industry that have financial and technical capabilities to be able to meet the minimum requirements of a Firm Commitment and meet the main terms and conditions of the Working Area Auction, as well as having good performance and track record to be able to participate in the Oil and Gas Working Area Auction Phase I Year 2024.
The Regular Auction schedule for the Mahakam and Panai Working Areas is:
Bid Document Access: from May 14, 2024 to September 9, 2024
Deadline for Submission of Participation Documents: September 11, 2024
Meanwhile, the schedule of Direct Bidding for Central Andaman, Amanah and Melati Working Areas are:
Bid Document Access: from May 14, 2024 to June 26, 2024
Deadline for Submission of Participation Document: June 28, 2024
