Indonesia Offers 15 Oil and Gas Blocks in First Tender for 2016

Indonesia's Ministry of Energy and Mineral Resources (MEMR) announced that the government is offering 15 oil and gas blocks, comprising 14 conventional and 1 unconventional, in its first tender for 2016, a senior official told participants Friday at the 40th Indonesian Petroleum Association (IPA) in Jakarta, as reported Monday in the MEMR website.

MEMR Upstream Business Development Director Djoko Siswanto said new concepts were introduced in the tender to offer investors greater flexibility, with bidders allowed to propose contract terms and conditions for the blocks subject to the economic viability of the project for the government. Investors may set the production sharing split for the blocks although the government revenue share after taxes must be greater than the contractors. Bidders are also required to set the non-zero signature bonus for the blocks, with the government selecting the most attractive bids.

Djoko pointed out that the government expects bidders to possess the requisite financial and technical capabilities, with the capacity to execute their work commitments for the blocks in the first three years.

"The final assessment is a combination of a participant's proposed work program and their commitment, signature bonus and proposed sharing split," he explained, as quoted in local daily The Jakarta Post Saturday.

Seven conventional oil and gas blocks offered in the regular tender are:

  1. South CPP, onshore Riau
  2. Oti, offshore East Kalimantan
  3. Suremana I, Makassar Strait
  4. Manakarra Mamuju, Makassar Strait
  5. South East Mandar, offshore South Sulawesi
  6. North Aguni, onshore West Papua
  7. Kasuri II, onshore West Papua

MEMR's offers for seven blocks through direct proposal are:

  1. Bukit West, offshore Natuna Islands
  2. Batu Gajah Dua, onshore Jambi
  3. Kasongan Sampit, onshore Central Kalimantan
  4. Ampuh, Java Sea
  5. Ebuny, offshore Southeast Sulawesi
  6. Onin, onshore and offshore West Papua
  7. West Kaimana, onshore and offshore West Papua

The sole unconventional block offered through a regular tender is Batu Ampar in onshore East Kalimantan.

Under regular tender, investors can collect bid documents from Jun 15 to Aug. 19, with clarification forum planned for June 20 to Oct. 19, MEMR said. Bids have to be submitted by Oct. 20.

Meanwhile, investors keen on blocks listed under direct proposal can obtain bid documents from June 15 to Aug. 5, while clarification forum has been set for June 20 to Aug. 5 and bid submission will close Aug. 8.

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