Indonesia has sought bids for four oil and gas blocks as the country looks to strengthen its upstream oil and gas sector.
The four blocks include the Sangkar block in offshore and onshore Central and East Java, the Peri Mahakam block in offshore and onshore East Kalimantan, the Bunga block in offshore East Java, and the Bose block in onshore and offshore East Nusa Tenggara.
Indonesian Energy Minister Arifin Tasrif was quoted by Reuters as saying that the Southeast Asia country aims to produce one million barrels of oil per day and 12 billion standard cubic feet per day of gas in 2030.
The four new blocks, which have been offered under the second round of bidding in 2022, have estimated combined resources of 3.73 billion barrels of oil and 300 billion cubic feet of gas, reported the news agency, citing the Indonesian Energy Ministry.
Indonesia has also awarded the West Kampar block to a consortium of Aserra Petrolindo Gemilang and SPR Langgak.
The consortium has agreed to make a $32.5m investment to undertake exploration and exploitation activities at the block.
It also committed to a $250,000 signature bonus.
During the first five years, the consortium will undertake G&G exploration work including 2D seismic for 250km, 3D seismic on 50km², and then the drilling of three exploratory wells.
Further exploitation commitments of the consortium also include four development wells, five well workovers, and building production facilities.
Indonesia Ministry of Energy and Resources Mineral Oil and Gas director general Tutuka Ariadji said: “The improvements made are in the form of improving fiscal provisions, setting incentives, and improving terms and conditions in the bidding of oil and gas work areas to make them more attractive to investors.”
In a separate development, Indonesian government agency SKK Migas has signed the Bawean Work Area Production Sharing Contract (WK) with Cooperation Contract Contractor.
The contract for the Bawean Working Area, which is located in the East Java Sea, has a 20-year term.