Indonesia opens oil and gas auctions

A senior Energy Ministry official said today that Indonesia has offered five working spaces for oil and gas exploration and one other exploration site in the country in the first round of this year’s auction nationwide.

According to the Ministry of Energy, the oil and gas block has a total potential of 3.94 billion barrels and 14.08 trillion cubic feet of gas.

They are Offshore Northwest Aceh, Offshore Southwest Aceh and Arakundo in Aceh, Bawean in Offshore East Java, Bengara 1 in North Kalimantan and Maratua 2 in Offshore Makassar Strait.

The director general of the Ministry of Petroleum and Natural Gas said the government has improved contractor insulation and provided more flexibility for projects with production participation.

In addition, the share of the first tranche in Petroleum (FTP) was reduced from 20% to 10% to attract more bidders.

FTP is the portion of the oil or natural gas produced before deducting all expenses to cover operating costs and production management costs due to the government and contractors.

Leave a Reply

Change Language
%d bloggers like this: