Arcandra Opens Discussion Opportunities On Bid of Oil and Gas WA

JAKARTA - On Today, Monday (19/2), the Ministry of Energy and Mineral Resources (EMR) announced the Bid of Oil and Gas Working Area (WA) in 2018. The working area is offered by 26 WK Migas, detailing 24 Oil and Gas Conventional WAs and 2 Oil and Gas Non Conventional WAs in which using the Gross Split scheme.

"According to our promise that the launching of first bid round would be carried out, and we fulfill our promise," said Vice Minister of Energy and Mineral Resources Arcandra Tahar began his speech after the announcement of WA bid by Acting of Director General of Oil and Gas, Ego Syahrial.

At the announcement of this bid, there are dozens of representatives of Oil and Gas Corporation Contractors (KKKS) in Indonesia from large, medium to small scale, national and international KKKS, among others from PT Total E & P Indonesie, PT Medco Energy, Mubadala Petroleum, Petronas, PT Eni, Lion Energy, Petrochina, PT Pertamina, PT Saka Energi Indonesia, and Bumi Siak Pusako.

Arcandra revealed, he hopes at least 50% of the total WA offered will attract investors. For that, he opens a big to KKKS in the discussion related to this Oil and Gas WA bid.

"If we can help according to our capacity, please let us know, I am open to discussion, review, talk related incentive and gross split. If you need me to talk, come please," explained Arcandra.

To all KKKS, Arcandra advised to see the data more deeply. If interested to be able to propose the bid documents as soon as possible. "If you have interest please submit as soon as possible, related to incentives and others that (discussed) after taking the document," said Arcandra.

Arcandra also stated that he ready provides various data needed by investors to learn more. "Whatever the data, if there are available data multi-client, we inform if we know," said Arcandra.

As known, 24 WAs of oil and gas Conventional is offered in two ways, namely 5 WAs offered through Direct Bid mechanism, while the remaining 19 WAs offered by Regular Bid. Meanwhile, 2 WAs oil and gas Non-Conventional are offered through Direct Bid.

The largest area of Oil and gas Conventional WA offered through the Direct Bid is East Seram WA located on onshore / offshore Maluku with total area of 6,504.32 km2 with minimum signature bonus of US $ 500,000. While the oil and gas conventional WA with the largest Regular Bida is Andika Bumi Kita WA located offshore East Java, also with a minimum signature bonus of US $ 500,000. And for the largest of oil and gas non-conventional WA is MNK (shale hydrocarbon) Southeast - Sumut WA located on the onshore of North Sumatra with total area of 2,888.36 km2 and minimum signature bonus of US $ 500.000. (NA)

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