Indonesia Invites Bids for 14 Conventional Oil & Gas Blocks
Indonesia's Ministry of Energy of Mineral Resources (MEMR) issued an invitation earlier this week for energy companies to bid for 14 blocks under the country's Conventional Oil and Gas Bidding Year 2016 as it attempts to boost domestic petroleum reserves.
Seven of these blocks will be awarded through direct negotiations, while the remainder will be awarded through a regular tender, the Ministry said on its website July 18.
The 7 blocks offered through direct negotiations are:
- Bukit Barat (offshore Riau)
- Batu Gajah Dua (onshore Jambi)
- Kasongan Sampit (onshore Central Kalimantan)
- Ampuh (offshore East Java)
- Ebuny (offshore Southeast Sulawesi)
- Onin (onshore-offshore West Papua)
- West Kaimana (onshore-offshore West Papua)
Oil and gas blocks offered through a regular tender are:
- South CPP (onshore Riau)
- Suremana I (offshore Makassar Strait)
- SE Mander (offshore South Sulawesi - West Sulawesi)
- North Arguni (onshore West Papua)
- Kasuri II (onshore West Papua)
- Manakarra Mamju (offshore Makassar Strait)
- Oti (offshore East Kalimantan)
To boost investors' interest in the tender, the Indonesian government has introduced a new scheme, known as "open bid split". Under this arrangement, oil and gas companies can propose the signature bonus and production split. The winning bids will be selected from those offering the best proposals based on their exploration commitment, signature bonus, and production split which the government assessed to be the most economically viable.
Energy companies keen on direct offers for the 7 blocks can access bid documents from July 18 to Aug. 22. Clarification forums will be held from July 21 to Aug. 24, with submission of bids due on Aug 31.
As for blocks offered through a regular tender, interested oil and gas companies can access bid documents from July 18 to Oct. 28 and clarification forums will be held from July 21 to Nov. 2. The deadline for bid submission will be on Nov. 14.
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