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Indonesia’s oil and gas auction draws limited interest from investors

JAKARTA ( – The second auction of oil and gas blocks for 2018 has drawn limited interest from investors, reflecting a lack of investors’ appetite on Indonesia’s oil and gas industry new investment.

The Energy and Mineral Resources Ministry kicked off the auction of 6 oil and gas blocks on August 14, 2018, consisting of three production blocks or working areas, namely Makassar Strait, Selat Panjang and South Jambi B and three exploration blocks, namely Southeast Mahakam, Banyumas and Andika Bumi Kita.

Until final date for submission of documents on Oct. 12, 18 bid documents were submitted for four working areas. In the later process, five bidders were interested in four blocks.

Bidders were only interested in four blocks namely, Makassar Strait, Selat Panjang, South Jambi B and Banyumas. Of those, only two blocks were awarded to the winners.

After going through an assessment of the bidders’ capability, both technical and financial, the energy ministry declared the winners as follows:

Banyumas block was awarded to PT Minarak Brantas Gas with an investment commitment of US$4 million and US$500,000 signature bonus, while South Jambi B was won by Hong Kong Jindi Group Co. Ltd with an investment commitment of US$60 million for five years and a signature bonus of US$5 million.

There were no winners of Makassar Strait and Selat Panjang. (*)

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