Government introduces new ?open bid split?

The government will introduce a new ?open bid split? in the tender of conventional oil and gas working areas starting this year in a bid to help lure investors.

Director for Upstream Development at the Ministry of Energy and Mineral Resources, Djoko Siswanto said in a statement Monday that under the open bid split model, investors can freely decide the size of the revenue split and signature bonus in their bid to ensure the economic feasibility of the project.

He added that the government will then select the best offer.

The new policy comes after recent tender of oil and gas working areas received little interest from investors.

Editing by Reiner Simanjuntak