Govt announces first round 2016 block tender

The Ministry of Energy and Mineral Resources announced on Friday the first round 2016 oil and gas block tender, offering 14 conventional blocks and one non-conventional block.

The announcement was made at the final day of the 40th IPA Convention & Exhibition.

Director of Upstream Management Djoko Siswanto said the government introduces a new concept in the current tender. First, terms and conditions stated in the contracts are owner estimates based on the government?s economic viability.

Second, bidders may propose a production split (open bid split) as long as the government?s production share, after tax deduction, is larger than the contractor?s; and the amount of signature bonus as long as they don?t propose zero bonus.

Third, the government will favor bidders whose bids are closer to owner estimate.

Djoko further said bidders will be judged based on several criteria, including financial capability, technical commitment, and fulfillment of administrative requirements. Tender winners will be selected based their technical commitment, amount of signature bonus and amount of split they offer.

The blocks offered in the tender are as follows:

CONVENTIOAL BLOCKS

Regular tender
1. South CPP, Onshore Riau
2. Oti, Offshore East Kalimantan
3. Suremana I, Makassar Strait
4. Manakarra Mamuju, Makassar Strait
5. South East Mandar, Offshore South Sulawesi
6. North Aguni, Onshore West Papua
7. Kasuri II, Onshore West Papua

Direct proposal
1. Bukit Barat, Offshore Natuna Islands
2. Batu Gajah Dua, Onshore Jambi
3. Kasongan Sampit, Onshore Central Kalimantan
4. Ampuh, Java Sea
5. Ebuny, Offshore Southeast Sulawesi
6. Onin, Onshore and Offshore West Papua
7. West Kaimana, Onshore and Offshore West Papua

NON-CONVENTIONAL BLOCK:

Regular tender
1. Batu Ampar, Onshore East Kalimantan

Schedule of direct proposal:
- Access to bid documents: June 15 ? Aug. 5, 2016.
- Clarification forum: June 20 - Aug. 5, 2016.
- Bid document submission: Aug 8, 2016.

Schedule for regular tender:
- Access to bid documents: June 15 ? Aug. 19, 2016.
- Clarification forum: June 20 ? Oct. 19, 2016.
- Bid document submission: Oct. 20, 2016.

Editing by Johannes Simbolon