JAKARTA (TheInsiderStories) – The Indonesian Energy and Mineral Resources Ministry (ESDM) has kicked off the tender process for 26 oil and gas working areas (WA), comprised of 24 conventional oil and gas working areas and two non-conventional working areas.
Deputy Minister for Energy and Mineral Resources Arcandra Tahar said that all the working areas are offered based on gross-split production sharing contract (PSC), instead of cost-recovery-based PSC applied in the previous tender.
In January, the Finance Ministry has issued tax ruling (Government Regulation No. 53/2020 on Tax Treatment for Upstream Oil and Gas Business Activities) that will be applied in the oil and gas production sharing contracts (PSC), based on a gross split scheme, as a move to attract more investors into the oil and gas sector. The new rule took effect on Dec. 28, 2017.
It said of the 24 working areas, five are offered through direct offer mechanism and 19 are offered through a regular tender process. Meanwhile, the two non-conventional oil and gas working areas are offered through direct offer scheme.
The ministry said the bidding documents for direct offer tender mechanism are available on the ministry’s website (http://e-wkmigas.esdm.go.id) on Feb. 19 – Mar. 27, 2018 for direct offer mechanism, while the bid documents for a regular tender mechanism is available from Feb. 19 to Jun. 7, 2018.
Clarification forum will be held on Feb. 22-Mar 29, 2018 for direct offer tender mechanism and Feb 22-Jun. 9, for a regular tender mechanism. Bid documents for direct offer mechanism must be submitted by Apr. 4, 2018 and regular tender by Jun. 19, 2018.
Following is the conventional oil and gas working areas that are being offered:
- Nibung located in onshore Riau
- South PP located in onshore Jambi
- Batu Gajah Dua located in onshore Jambi
- Air Komering located in onshore South Sumatera
- Bukit Barat in offshore Natuna
- East Sokang in offshore Natuna
- Banyumas in onshore Central Java
- East Muriah in offshore East Java
- North Kangean in offshore East Java
- Andika Bumi Kita in offshore East Java
- Belayan in onshore East Kalimantan
- West Sanga-Sanga in onshore East Kalimantan
- Suremana I in offshore Makassar Strait
- South East Mahakam in offshore East Kalimantan
- Manakarra Mamuju in offshore West Sulawesi
- Karaeng in onshore/offshore South Sulawesi
- Ebuny in offshore Southeast Sulawesi
- West Berau in offshore West Papua
- Cendrawasi Bay II in offshore West Papua
Direct Offer Mechanism:
- South East Jambi in onshore Jambi
- Citarum in onshore West Java and Central Java
- East Ganal in offshore Makassar Strait
- East Papua in onshore Papua
- East Seram in onshore/offshore Maluku
Non-conventional oil and gas working areas:
- GMB Sumbagsel in onshore South Sumatera
- MNK Sumut Tenggara in onshore North Sumatera.