Indonesian Government to Offer Nine New Concessions
The Government of Indonesia is planning to offer nine new exploration concessions in October of this year, according to the Ministry of Energy and Mineral Resources. Iin Arifin Tachyan, oil & gas director, said the fields are located in Papua, East Kalimantan, South Sulawesi, Natuna Island and offshore Java.
The tender is expected to take place in October after contracts have been secured from the previous round of tenders in which eleven concession were offered. The winners from this earlier round will be announced in August.
The Indonesian Government is also considering providing additional incentives for investors by increasing the production split. No details were provided on this new incentive. Under existing production-sharing contracts, investors are entitled to take 15 percent of their oil output and 30 percent of their gas output. The remainder goes to the government. The government has increased the split for investors for the current licensing round to be awarded in August to between 20% and 25% for oil, and to 35 percent for gas.