Energy Ministry Announces Second Round of Oil and Gas Work Areas Bid 2021

Monday, 29 November 2021 - Dibaca 2885 kali

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 420.Pers/04/SJI/2021

Date: 29 November 2021

Energy Ministry Announces Second Round of Oil and Gas Work Areas Bid 2021

The Indonesian government put eight oil and gas work areas on offer in the Second Round of Oil and Gas Work Areas Bid of 2021.

The eight work areas on offer consist of one exploitation and three exploration work areas in Direct Proposal Tender mechanism, and four exploration work areas in Regular Tender mechanism.

1. One Exploitation Work Area offered in Direct Proposal Tender mechanism

No.

Work Area

Location

Size (km2)

Minimum Firm Commitment

1.

Bertak Pijar Puyuh

Onshore South Sumatra

266.99

- Workover of 5 wells

2. Three Exploration Work Areas offered in Direct Proposal Tender mechanism

No.

Work Area

Location

Size (km2)

Minimum Firm Commitment

1.

North Ketapang

Onshore and Offshore East Java

3,121.4

- G&G

- 300 km2 of 3D seismic acquisition & processing

2.

Agung I

Offshore Bali and East Java

6,656.73

- G&G

- 2,000 km of 2D seismic acquisition & processing

3.

Agung II

Offshore South Sulawesi, West Nusa Tenggara, and East Java

7,969.84

- G&G

- 2,000 km of 2D seismic acquisition & processing

3. Four Exploration Work Areas offered in Regular Tender mechanism

No.

Work Areas

Location

Size (km2)

Minimum Firm Commitment

1.

West Palmerah

Onshore South Sumatra and Jambi

566.3

- G&G

- 200 km of 2D seismic acquisition & processing

2.

Paus

Offshore Natuna

8,214

- G&G

- 200 km2 of 3D seismic acquisition & processing

- 1 exploration well

3.

Maratua II

Onshore and Offshore North Kalimantan

5,333.33

- G&G

- 1,000 km of 2D seismic acquisition & processing

4.

Karaeng

Onshore and Offshore South Sulawesi

6,845.36

- G&G

- 200 km of 2D seismic acquisition & processing

The government has revised the terms & conditions for the new tender round, including a better profit split for contractors taking into account the risk factor of a work area, open bid signature bonus, 10% shareable First Tranche Petroleum (FTP), price of Domestic Market Obligation (DMO) set at 100% during the contract period, flexibility to choose contract type (Cost Recovery Production Sharing Contract (PSC) or Gross Split PSC), a new provision of relinquishment (no mandatory relinquishment in the third year of the contract), access to data through a membership mechanism in the Migas Data Repository (MDR) as well as other incentives and tax facility according to applicable regulations.

The government is inviting upstream oil and gas Business Entities and Permanent Establishments to participate in the bid. To qualify, these businesses must fulfill financial and technical requirements, satisfy the minimum requirements for Firm Commitment, comply with the terms and conditions of Work Areas Bid, and have proven track record of excellent performance.

The schedule of the second bid round of 2021 is as follows:

A. Direct Proposal Tender

o Access to Bid Document: from 29 November 2021 until 11 January 2022

o Submission of Participation Document: 11--12 January 2022.

B. Regular Tender

o Access to Bid Document: between 29 November 2021 and 24 March 2022

o Submission of Participation Document: 24--25 March 2022.

Interested Business Entities and Permanent Establishment can get more information on registration and Bid Document access via the following link: https://esdm.go.id/wkmigas.

Terms and Conditions of Senoro-Toili Work Area

The Minister of Energy and Mineral Resources has also granted approval to extend the Production Sharing Contract between the upstream oil and gas regulatory agency SKK Migas and the contractors of Senoro-Toili Work Area. The extension will become effective as of 4 December 2027 for a twenty-year period, and run under a Cost Recovery PSC scheme.

PT Pertamina Hulu Energi Tomori Sulawesi will hold 50% of the Participating Interest and acts as the operator, while PT Medco E&P Tomori Sulawesi and Tomori E&P Limited will hold 30% and 20% of the share, respectively. A 10% Participating Interest will later be offered to a regional government-owned enterprise.

These contractors are committed to a Firm Commitment in the forms of G&G, 3D seismic, and well drilling amounting to USD37.9 million.

According to Decision of Minister of Energy and Mineral Resources Number 229.K of 2021 dated 24 November 2021, the contractors must pay the signature bonus and put the performance bond before the contract is signed as well as comply with the obligations of the Firm Commitment and other provisions in a responsible manner as from the effective date of the contract. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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