The Natuna D-Alpha, Panai and Patin Working Areas (WK) will be auctioned off by the Ministry of Energy and Mineral Resources (ESDM). The bidding process of the work areas will end on November 2023.
WK Natuna D-Alpha is one of the largest gas fields with oil and gas reserves reaching 230 trillion cubic feet (TCF) and 350 million barrels of oil (MMBO).
“Natuna D-Alpha is one of the largest gas fields in Indonesia,” said Tutuka Ariadji, Direktur Jenderal Minyak dan Gas Bumi, on July 25, 2023.
Through the auction, the government offers a flexible type of production sharing contract, namely cost recovery and gross split.
The D-Alpha, Panai, and Patin work areas
The minimum commitment for the Natuna D-Alpha Block is 5 years of study, and 1 well with a signing bonus of US$ 500,000.
Tutuka said that the split scheme offered for cost recovery at Natuna D-Alpha is an open bid, and a 57:43 or 52:48 gross split scheme for gas.
In addition, the Panai WK is located on land and off the coast of North Sumatra and Riau, with an area of 5,180.46 square kilometers (km2). The ministry has set a minimum commitment of 3 years of Geology and Geophysics (G&G) studies and one exploration well.
Meanwhile, the offer is for WK Patin which is located in the plains of Riau, Jambi, West Sumatra. Estimated reserves reach 1.2 million barrels of oil, with an area of 5,440.85 km2. The government will set a minimum commitment of 3 years for G&G studies, as well as acquisitions and 2D 250 km seismic.
The WK Patin auction mechanism will use a flexible contract in the form of a cost recovery and gross split.
The cost recovery scheme offered at WK Patin is 60:40 for oil and 55:45 for gas. Meanwhile, the gross split offered is 57:43 for oil and 52:48 for gas.
The Ministry of Energy and Mineral Resources has issued a regular auction schedule for oil and gas WK phase II in 2023. Bid document access starts July 25, 2023, to November 21, 2023. Meanwhile, the deadline for submitting participation documents is November 24, 2023.
Parties interested in registering for the auction or wished to find more information can visit: https://esdm.go.id/wkmigas.
