Ministry unveils tender of five oil, gas blocks
Friday, February 22 2019 - 07:53 AM WIB
The Ministry of Energy and Mineral Resources is offering five oil and gas blocks to investors via regular tender mechanism which was officially launched on Thursday.
The ministry said in a statement that the five conventional oil and gas blocks include two previously producing blocks, namely Selat Panjang and West Kampar; and three exploration blocks, namely Anambas, West Ganal, and West Kaimana.
The West Kampar block is located onshore in Riau and North Sumatra provinces. Its last production rate on 27 March 2017 stood at 112 bopd. The winning bidder of the block is expected to pay signature bonus of at least US$5 million to the government, and to pledge fixed investment commitment of at least $64.43 million to fiancé G&G study, 500-km 2D seismic, 300 sqkm 3D seismic, and drilling of six exploration wells, the ministry statement said.
The Selat Panjang block, located onshore Riau Province, had a production rate of 1 bopd when it made its last production on 21 February 2018, the ministry said. Expected signature bonus is at least $5 million, while fixed investment commitment at least $62.99 million for G&G study, 500-km 2D seismic, 200 sqkm 3D seismic, and drilling of five exploration wells.
The Anambas exploration block is located offshore Riau Islands Province. Expected signature bonus is at least $2 million, and investment commitment for G&G study, and drilling of one exploration well.
The West Ganal exploration block is located offshore East Kalimantan. Minimum signature bonus is expected at $15 million, with investment commitment to finance G&G study, drilling of three exploration wells, 400 sqkm 3D seismic, and 500 sqkm 2D seismic.
Lastly, the West Kaimana exploration block is located onshore and offshore West Papua Province. Expected signature bonus is $2 million and minimum investment commitment for G&G, drilling of one exploration well, and 200 km 2D seismic.
The ministry said that this is the first phase of the 2019 oil and gas block tender program. Access to bid document is scheduled on 25 February-24 April 2019.
Submission of participating documents must be made by 25 April at the latest.
The ministry said that tender participants will be given free access to oil and gas block data once they accessed the bid document. Only the winning bidders will be subject to fee for package data.
Editing by Reiner Simanjuntak