Government offers 10 new oil, gas working areas

The government will offer 10 new conventional oil and gas working areas to investors this year.

Director of Upstream Oil and Gas Development, at the Ministry of Energy and Mineral Resources, Tunggal, said in a statement obtained Tuesday that seven of the working areas will be in the form of joint study, while three to be offered via regular tender mechanism.

He said that the result of this offer will be announced at the upcoming Indonesia Petroleum Association (IPA) conference and exhibition in May of this year.

He added that the government will apply the recently-introduced gross split mechanism in the contract of the new oil and gas working areas.

Tunggal said that the number of working areas offered to investors could increase as working areas offered last year which failed to gain interest from investors may also be re-offered this year.

He said that the result of the offer made last year has been submitted to the Minister of Energy and Mineral Resources, and is set to be announced this month.

The ministry last year offered 14 conventional oil and gas working areas through regular tender mechanism and direct appointment. In addition three non-conventional working areas including Raja coal bed methane (CBM) working area, Bungamas CBM working area, and Batu Ampar hydrocarbon shale block.

Editing by Reiner Simanjuntak