Govt issues regulation on non-conventional oil, gas working areas
Wednesday, February 8 2012 - 08:09 AM WIB
Energy and Mineral Resources Minister Jero Wacik said non-conventional oil and gas resources are strategic resources that will help the country in diversifying its energy needs. The regulation is expected to stimulate development of non-conventional gas in the country such as coal bed methane (CBM) and shale gas.
The regulation is comprised of 10 chapters, covering various topics such as determination of WK, tender process, implementation of exploration and exploitation activities.
Under the regulation, non-conventional oil and gas is defined as oil and gas exploited from reservoir formations with low permeability such as shale oil, shale gas, tight and sand gas, coal bed methane (CBM) and methane-hydrate which are explored utilizing certain technology.
Under the ruling, the maximum size of non-conventional oil and gas WK is 3,000 square kilometers for onshore and 4,500 square kilometers for offshore WK.
The tender of non-conventional oil and gas WK is conducted by Directorate General for Oil and Gas (Migas) through regular tender and direct offering.
The assessment on the tender is made based on technical valuation on commitment during first three years of exploration, financial capability and evaluation on bidders past performances.
Those participating in the regular tender are required to provide guarantee for their bid, valued at 100 percent of the value of signature bonus and should be made during submission of participating document.
Regular tender participants for non-conventional oil and gas are required to pay exploration commitment of 10 percent of the total value of exploration commitment for three years or a minimum of US$1.5 million and 10 percent of the amount of budget commitment for the first two years of exploitation or a minimum US$1 million.
Editing by Roffie Kurniawan