Government Announces Bid Round for 8 Oil and Gas Working Areas Offering Phase II in 2021
The government c.q the Ministry of Energy and Mineral Resources has again opened the 2021 Oil and Gas Working Area (WK) Auction Phase II in 2021, Monday (29/11). A total of 8 Oil and Gas WKs are offered at this stage, consisting of 1 Exploitation WK with a Direct Offer mechanism, 3 Exploration WKs with a Direct Offer mechanism and 4 Exploration WKs with a Regular Auction mechanism.
This Phase II Oil and Gas WK offer is subject to Auction Terms & Conditions, including improvements to the Contractor’s profit split taking into account WK risk factors, signature bonus open to bidding, FTP being 10% shareable, application of 100% DMO price during the contract, providing flexibility in the form of the contract ( PSC Cost Recovery or PSC Gross Split), new provisions for release (no partial changes in the 3rd year of the contract), ease of data access through the Oil and Gas Data Repository (MDR) membership mechanism and the provision of incentives and tax facilities according to applicable regulations.
The announcement of the Phase II WK Migas tender was delivered by the Director General of Oil and Gas Tutuka Ariadji virtually at the 2nd International Convention on Indonesian Upsteam Oil and Gas 2021.
The WK Migas offered are:
A. One Exploitation Work Area offered with a Direct Offer mechanism:
1. WK BERTAK PIJAR PUYUH
Location: Mainland South Sumatra
Area : 266.99 km2
Minimum Firm Commitment: Workover 5 Wells
B. Three Exploration Work Areas offered by Direct Offer mechanism:
1. WK NORTH KETAPANG
Location: Mainland and Offshore East Java
Area: 3,121.4 km2
Minimum Firm Commitment: G&G, 3D Seismic Acquisition & Processing 300 km
2. WK AGUNG I
Location: Off the coast of Bali and East Java
Area: 6,656.73 km2
Minimum Firm Commitment: G&G, 2D Seismic Acquisition & Processing 2000 km
3. WK AGUNG II
Location: Off the coast of South Sulawesi, West Nusa Tenggara and East Java
Area: 7,969.84 km2
Minimum Firm Commitment: G&G, 2D Seismic Acquisition & Processing 2000 km
C. Four Exploration Work Areas offered by Regular Auction mechanism:
1. WK WEST PALMERAH
Location: Mainland South Sumatra and Jambi
Area: 566.3 km2
Minimum Firm Commitment: G&G, 2D Seismic Acquisition & Processing 200 km
2. WK PAUS
Location: Off Natuna Beach
Area: 8,214 km2
Minimum Firm Commitment: G&G, 200 km 3D Seismic Acquisition & Processing, 1 Exploration Well
3. WK MARATUA II
Location: Mainland and Offshore North Kalimantan
Area: 5,333.33 km2
Minimum Firm Commitment: G&G, 2D Seismic Acquisition & Processing 1,000 km
4. WK KARAENG
Location: Mainland and Offshore South Sulawesi
Area: 6,845.36 km2
Minimum Firm Commitment: G&G, 2D Seismic Acquisition & Processing 200 Km
The government invites Business Entities and Permanent Establishments engaged in the upstream oil and gas industry that have financial and technical capabilities, are able to meet the minimum requirements for a Firm Commitment, fulfill the main terms and conditions of the Work Area Auction, and have a good performance and track record to be able to participate in the 2021 Conventional Oil and Gas Working Area Auction Phase II.
The schedule for the 2021 Conventional Oil and Gas WK Auction Phase II is as follows:
A. Direct Offer
Bid Document Access: starting on November 29, 2021 until. January 11, 2022
Submission of Participation Documents: January 11, 2022 s.d. January 12, 2022.
B. Regular Auction
Bid Document Access: from November 29, 2021 until. March 24, 2022
Submission of Participation Documents: March 24, 2022 s.d. March 25, 2022.
For interested Business Entities and Permanent Establishments, registration and access to Bid Documents are carried out through the online auction website for the Oil and Gas Working Area according to the schedule at https://esdm.go.id/wkmigas. (TW)
