Government offers Inpex, Petronas oil, gas areas in Natuna

Interim Minister of Energy and Mineral Resources Luhut Panjaitan said that the government has offered a number of investors including Inpex and Petronas to develop oil and gas areas in the Natuna Islands.

Luhut said in a statement issued by the Directorate General of Oil and Gas at the ministry on Wednesday that the offer was made to Inpex during his recent visit to Japan, while also making similar offer to Petronas during a meeting with company top officials in Jakarta. ?They?re interested,? he said, pointing out that the investors were interested to invest after the government promises fiscal and non-fiscal incentives for exploration activities under the revision of Government Regulation No 79/2010, the draft of which has been sent to the State Secretary for approval by President Joko Widodo.

The directorate has earlier said it was planning to offer six oil and gas working areas in Natuna to investors, four of which to be offered in 2016 including East Natuna, Bukit Barat, Dorang and Emas Putih, while two others including Durian and South Tuna in 2017.

According to the directorate?s statement on Wednesday, there currently 16 oil and gas working areas in Natuna, six of which already in production stage, 10 exploration stage, three of which are in the process of contract termination as it has expired and has yet to find oil and gas.

The oil and gas working areas already in production stage are South Natuna Sea Block B (operated by Conoco Phillips InC), Natuna Sea Block ?A? (Premier Oil Natuna Sea B.V), Kakap (Star Energy/Kakap Ltd) and Udang Block (TAC Pertamina EP Pertahalahan Arnebrata Natuna). Two others, which have been declared to be in exploitation status but have yet to start production, are Sembilang (Mandiri Panca Usaha), and Northwest Natuna (Santos).

Editing by Reiner Simanjuntak