Indonesia Offers 12 Oil and Gas Blocks in 2022

TheIndonesia.id - The Ministry of Energy and Mineral Resources offers 12 oil and gas blocks or working areas (WK) in 2022 with contract flexibility to generate upstream oil and gas business activities in Indonesia.

"In 2022, we will prepare an auction for 12 oil and gas WKs," said Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Tutuka Ariadji at an online press conference quoted by Antara in Jakarta, Wednesday, January 19, 2022.

The offer was less than in 2021 when the government offered 14 oil and gas blocks. Under the Minister of Energy and Mineral Resources Regulation (Permen) Number 12 of 2020 concerning Gross Split Production Sharing Contracts, the government provides flexibility in the form of cooperation contracts in work areas auction i.e. cost recovery or gross split.

Tutuka explained that in 2021, the government offered 14 conventional oil and gas WKs or 140 percent of the target of 10 WKs. The announcement was carried out in two stages, namely stage I on June 17, 2021, as many as 6 WK, and stage II on November 29, 2021, as many as 8 WK.

"We have the winners from the phase I bid and cooperation contracts have been carried out in 2 WK namely Liman WK and South CPP WK," he said.

According to Tutuka, Directorate General of Oil and Gas continues to improve the form and main provisions (terms & conditions) of the cooperation contract to make it more attractive. The improvements include an increase in contractor splits, which for oil starts at 80:20 for geological, infrastructure, and resource risks in the very low category, up to 55:45 for the very high category. Meanwhile, natural gas starts from 75:25 for the very low category to 50:50 for the very high category.