Indonesia seeks bids for six oil and gas blocks
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Indonesia seeks bids for six oil and gas blocks

18 Jun 2021 (Last Updated June 22nd, 2021 14:50)

The blocks have combined recoverable resources of 917.93 million barrels of oil and 598.09 billion of standard cubic feet gas.

Indonesia seeks bids for six oil and gas blocks
The six blocks have recoverable resources of 917.93 million barrels of oil. Credit: Boromir1 from Pixabay.

The Indonesian Government is offering six oil and gas blocks in the first round of Indonesia Petroleum Bid Round 2021.

The six oil and gas blocks include South CPP, Sumbagsel, Rangkas, Liman, Merangin III and North Kangean.

The bidding round was originally planned for launch in 2020 but was postponed due to the price fluctuation of global crude oil following the outbreak of the Covid-19 pandemic.

According to ministry data, the six blocks on offer are estimated to have total recoverable resources of 917.93 million barrels of oil and 598.09 billion standard cubic feet of gas.

Indonesian Energy Ministry oil and gas director general Tutuka Ariadji was reported by Reuters as saying: “We will have more to be offered in the upcoming months. We already have some more working areas, but needed some fine-tuning.”

To help attract new investors, the government has revised the terms and conditions for the new tender round, the Ministry of Energy & Mineral Resources.

The investors now have the option to select between the newer gross-split production-sharing contract (PSC) and the traditional cost-recovery (PSC).

Through a direct bid mechanism, the government is offering four blocks. These include South CPP onshore Riau, Sumbagsel onshore South Sumatera, Rangkas onshore Banten & West Java, and Liman onshore-offshore East Java.

Under regular auction, Indonesia is offering the remaining two blocks, Merangin III onshore south Sumatra and onshore Jambi, and North Kangean offshore East Java.