Thursday, June 20, 2024

Six oil and gas blocks offered in 2023 Auction remain unsold

Reading Time: 2 minutes
Audina Nur

Journalist

Editor

Interview

The Ministry of Energy and Mineral Resources (ESDM) has not yet got winners for the auction of six oil and gas working areas (WK) opened in the second and third auction periods of 2023. These six blocks include Panai WK, Patin WK, Natuna D-Alpha WK, Akimeugah I WK, Akimeugah II WK, and Bobara WK. The blocks mentioned latter are still in the evaluation stage with interested companies.

“There are some interested parties, but after conducting internal evaluations, they may not meet their economic calculations, so they did not submit bidding documents,” Director of Oil and Gas Upstream Business Development at ESDM, Noor Arifin Muhammad, said on Wednesday, January 31, 2024.

Noor said further that the ministry has designated the oil and gas blocks with low interest as open areas. As for Bobara working area, it is still in the evaluation stage following a request for an extension of the auction period by interested companies.

“As for Akimeugah I and II working areas, there were no auction winners, and they will also become open areas,” he said. Additionally, the government is also opening a joint study scheme for several working areas that have not yet been sold.

Previously, the Upstream Oil and Gas Regulatory Task Force (SKK Migas) targeted upstream oil and gas investments in 2024 at US$17.7 billion, or an equivalent to Rp275.14 trillion. This investment target represents a 29 percent increase from the realization of upstream oil and gas investments throughout 2023, which amounted to US$13.7 billion or approximately Rp212.96 trillion.

“For 2024, we have set a much higher investment target of around US$17.7 billion, exceeding the long-term plan target of US$16 billion,” SKK Migas Head, Dwi Soetjipto, told a media conference in Jakarta on January 12, 2024.

Dwi said that massive investments over the past eight years have been able to reduce the decline in production rates in the majority of aging production fields. The decrease in oil lifting throughout 2023 could be contained at 1 percent, while gas production experienced a 2.2 percent increase. However, due to the suboptimal absorption of gas by buyers, gas lifting or transmission grew only by 1 percent.

Audina Nur

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
No topics
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

Former West Java Governor Ridwan “Emil” Kamil is gaining traction as a potential candidate for the Jakarta gubernatorial race, securing the backing of at least Golkar Party and the National Mandate Party (PAN).
The government says that Indonesia has the potential to be a leading regional producer of hydrogen and ammonia, with its competitive adavantage in clean hydrogen production.
President-elect Prabowo Subianto has unveiled a “synchronization task force” composed entirely of senior members from his Gerindra Party, signaling a move to ensure seamless transition from outgoing to incoming administration.
A labor union of mining and energy industry has called on the Ministry of Industry to visit and hold an investigation into the recent work accident within the Indonesia Morowali Industrial Park (IMIP) in Morowali regency, Central Sulawesi.
The Ministry of Energy and Mineral Resources (ESDM) backs State oil and gas company PT Pertamina’s plan to acquire a Brazilian bioethanol company as a strategic move to foster the bioethanol market in Indonesia.
President-elect Prabowo Subianto is reportedly planning to increase Indonesia’s debt ratio to nearly 50 percent of its Gross Domestic Product (GDP) over the next five years intended to support Prabowo’s presidential programs.