Jakarta, the Government through the Ministry of Energy and Mineral Resources announced the Offer of Oil and Gas Working Areas Phase I in 2021. A total of 6 oil and gas working areas were offered in this first round, consisting of 4 working areas through the Direct Offer mechanism and 2 working ares through the Regular Auction mechanism.
The announcement of the oil and gas working area offer was conveyed by the Director General of Oil and Gas Tutuka Ariadji in a series of Oil and Gas Investment Day events which were opened by the Minister of Energy and Mineral Resources Arifin Tasrif and held offline and online, Thursday (17/6). This activity is a pre-event of The IPA Convec 2021 which will be held next September.
Director General of Oil and Gas Tutuka Ariadji explained, the Government continues to strive to make auctions of oil and gas working areas more attractive by improving terms and conditions, such as increasing contractor profit sharing taking into account block risk factors, Open Bid Signature Bonus, FTP 10%, application of DMO prices. 100% during the contract period, flexibility of the Cooperation Contract scheme (Cost Recovery or Gross Split).
In addition, new release provisions (no obligation to release part of the territory in the 3rd year of contract), easy data access through the Migas Data Repository (MDR) membership mechanism, as well as incentives and tax facilities in accordance with applicable laws and regulations.
A. Four Oil and Gas As through the Direct Offer mechanism:
1. South CPP
Location: Riau Onshore
Size: 5,446.39 km2
Minimum of Firm Commitment: G&G, 500 Km of 2D seismic, 50 Km2 of 3D seismic dan 1 exploration well.
2. Sumbagsel
Location: South Sumatera onshore
Size: 1,751.04 km2
Minimum of Firm Commitment: G&G dan 1 exploration well
3. Rangkas
Location: Banten & West Java onshore
Size: 3,969.8 km2
Minimum of Firm Commitment: G&G, 300 Km of 2D seismic
4. Liman
Location: East Java onshore & offshore
Size: 3,135 km2
Minimum of Firm Commitment: G&G, 400 Km of 2D seismic
B. Two Oil and Gas Working Areas through the Regular Auction mechanism:
1. Merangin III
Location: South Sumatera and Jambi onshore
Size: 1,488.84 km2
Minimum of Firm Commitment: G&G, 100 Km2 of 3D seismic dan 1 exploration well.
2. North Kangean
Location: East Java offshore
Size: 4,679.33 km2
Minimum of Firm Commitment: G&G, 200 Km2 of 3D seismic dan 1 exploration well
The government invites domestic and foreign companies (BU/BUT) in the upstream oil and gas business sector that have financial and technical capabilities, are able to meet the requirements for a definite commitment of at least 3 years, are able to meet the terms and conditions of the tender work area, as well as good performance and track record for take part in the first round of the 2021 Oil and Gas Working Area Auction, with the following schedule:
A. Direct Offer
Document Bid Access: 17 June 2021 – 28 July 2021
Submission of Participation Documents: 28 July 2021 – 30 July 2021
B. Regular Auction
Document Bid Access: 17 June 2021 – 12 October 2021
Submission of Participation Documents: 12 October 2021 – 14 October 2021
Interested companies can register and access the Bidding Documents through the e-tender website: https://esdm.go.id/wkmigas according to schedule. (TW)
