The Ministry of Energy and Mineral Resources (ESDM) is set to auction six oil and gas working areas (WK) next month.
Ariana Soemanto, Director of Upstream Oil and Gas Program Development at the ESDM ministry, revealed that these working areas will focus on exploration in Indonesia’s eastern regions, including Buton, Timor, Seram, Aru, and Papua.
“Several of these areas have already been designated as new oil and gas blocks, and next month they will be among the WK candidates up for auction,” Ariana said during a Focus Group Discussion (FGD) titled “Attracting Upstream Oil and Gas Investors for National Energy Security” held on Wednesday, September 26, 2024.
Ariana cited that exploration efforts have been carried out through joint studies. Currently, there are 17 areas under exploration, with 11 more in the submission phase.
According to Ariana, the auction is part of the government’s strategy to boost reserves and production amid challenges such as declining output and fluctuating global oil prices.
In addition to the auctions, the government is focusing on optimizing production through technological innovations, reactivating idle fields, and revising existing policies.
Previously, the ESDM ministry announced on September 3, 2024 the winners of the first phase of the 2024 oil and gas WK auction for the Central Andaman, Amanah, and Melati blocks.
The auction generated an investment commitment of US$19.88 million (Rp 308.97 billion) and a signing bonus of US$800,000 (Rp 12.43 billion).
“A Chinese oil and gas company participated in the auction, and we extend our gratitude for the support of the Chinese government,” Acting Director General of Oil and Gas Dadan Kusdiana said as quoted in a press statement.
The auction winners were officially announced by ESDM Minister Bahlil Lahadalia through the issuance of the Winning Bid Letter. “Congratulations to the winners,” Dadan added.
In the first phase of the 2024 WK auction, five blocks were offered, including Amanah, Central Andaman, Melati, Panai, and Pesut Mahakam.
The auctions for the Panai and Pesut Mahakam blocks are still ongoing and will close on September 11, 2024, using a regular auction mechanism.
For the second phase of the 2024 WK auction, several potential blocks have been identified, including Air Komering, Binaiya, Gaea, Kojo, and Serpang, which are expected to be offered.
