Indonesia: Investors Set Eyes on 5 Oil, Gas Blocks

• Jan 02, 2018

TEMPO.CO, Jakarta – Deputy Minister of Energy and Mineral Resources Arcandra Tahar said that investors were interested in five oil and gas working areas offered by the government. The government held auctions to bid out ten oil and gas blocks at the end of last year.

The auction lasted from 22 May to 29 December 2017. The Ministry of Energy offered 10 oil and gas working areas, seven of which were directly offered while three were auction regularly.

Investors were recorded to have set their eyes on Andaman I, Andaman II, Merak-Lampung, Pekawai, and West Yamdema.

Areas that were not bid are South Tuna and Kasuri III (direct offer) as well as Tongkol, East Tanimbar, and Memberamo (regular auction).

Arcandra said some investors were from international companies. He said that the many participants in the auction were due to the government policy to switch to the gross split scheme in replacement of the old cost recovery system.

Arcandra said the Energy Ministry will follow up on investors’ bid and conduct verifications. This process is expected to be completed in January or February 2018.

Source: https://en.tempo.co/read/news/2018/01/02/056914513/Investors-Set-Eyes-on-5-Oil-Gas-Blocks