Govt awards nine oil and gas blocks with bp, Mubadala, Inpex among winners

By Romel S. Gurky

The government has awarded nine oil and gas working areas across key basins from eastern regions to Sumatra and offshore areas, with total firm commitments of $84.75 million and signature bonuses of $3.65 million, the Energy and Mineral Resources Ministry said.

The blocks span a wide geographic range, including Bintuni and Drawa in West Papua, Southwest Andaman in offshore Aceh, Barong in East Java waters, as well as Karunia, Delapan Muaro, Tapah and Nawasena across Sumatra, and Jalu in eastern parts of the archipelago.

A consortium of BP Exploration Indonesia Limited, MI Berau B.V., CNOOC Southeast Asia Limited and Indonesia Natural Gas Resources Muturi Inc. secured the Bintuni block in West Papua with a $16.55 million commitment covering seismic work and one exploration well, and also won the nearby Drawa block with a $6.45 million commitment focused on geological and geophysical studies and 2D seismic acquisition.

The Karunia block in Sumatra was awarded to PT Sele Raya with a $9.9 million commitment that includes 3D seismic acquisition and two exploration wells, while the Jalu block in eastern regions went to Armada Talu Holdings B.V. with a $6.6 million commitment.

Mubadala Petroleum secured the Southwest Andaman block offshore Aceh with an $8.2 million commitment, targeting seismic acquisition and subsurface studies in a frontier basin.

The Barong block in offshore East Java was awarded to a consortium of Inpex Corporation and BP Exploration Indonesia Limited with a $2.5 million commitment.

Read also : Govt prepares additional oil and gas blocks for auction

In Sumatra, the Delapan Muaro block was awarded to PT Tenang Wijaya Sejahtera with a $1.5 million commitment, while PT Goldenheaven Prima Investama won the Tapah block with the largest commitment of $29.55 million, including exploration, development drilling and production enhancement programmes.

The Nawasena block, also located in Sumatra, was awarded to PT Medco Energi Linggau with a $3.5 million commitment focused on seismic acquisition.

Director General of Oil and Gas Laode Sulaeman said the awards demonstrate continued investor interest in upstream exploration, supported by improved fiscal terms and regulatory incentives.

In addition to the nine awarded blocks, the government said the Mabelo working area in Southeast Sulawesi, covering both onshore and offshore zones, drew no winning bidder and has been designated as an open or “available” area for future offers. The block spans more than 7,300 square kilometres and is estimated to hold resources of around 282 million stock tank barrels of oil equivalent.

Authorities said the area will be re offered to investors through a direct proposal mechanism, allowing companies to submit bids and propose contract terms within a specified period.

The ministry added that of around 110 identified potential oil and gas areas nationwide, 21 have now been awarded since late 2024, including the latest nine blocks, as it seeks to accelerate exploration, unlock new reserves and strengthen long term energy supply.

Editing by Alexander Ginting