Govt to tender 10 new oil, gas blocks in mid-October

The government will open tender for 10 new oil and gas exploration blocks on October 14, oil and gas director general Iin Arifin Takhyan told reporters on Thursday.

The Ministry of Energy and Mineral Resources said earlier that the 10 blocks were located in Jambi (one block), off the southern coast of Banten (one block), off the northern coast of East Java (three blocks), off the southern coast of Timor Barat (one block), off the coast of Tanimbar (two blocks) and in the Bird’s Head area of Papua (two blocks).

In February this year, the ministry offered 11 blocks for investors. Eight of them have been taken up.

In the last tender the government had offered a new incentive to attract investors such as the increase in the percentage of the oil production split for investors to between 20 percent and 25 percent from 15 percent as usual. The percentage of gas production for investors has been also raised to 35 percent to 40 percent from 30 percent.

The ministry indicated that it would provide similar incentives to investors interested in the 10 blocks. (godang)