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Conrad Asia Energy wins two oil, gas blocks in Aceh, pledges $30 million in investment
The Energy and Mineral Resources Ministry has announced energy company Conrad Asia Energy Ltd. as the winning bidder for the Meulaboh and Singkil working areas off the coast of Aceh.
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T
he Energy and Mineral Resources Ministry has named energy company Conrad Asia Energy Ltd. as the winning bidder for the Meulaboh and Singkil working areas off the coast of Aceh.
The ministry’s oil and gas director general, Tutuka Ariadji, said the company’s three-year total investment commitment for each oil and gas block was US$15 million, while the signing bonus was $50,000.
“The decision is made based on the assessment results of the participation documents submitted by the bidders,” Tutuka said in a virtual briefing on Tuesday.
The firm's commitments in the three-year contract at both oil and gas blocks include geological and geophysical (G&G) study, 3D seismic acquisition and processing as well as the construction of one exploration well.
The Meulaboh block, which has a surface area of about 9,182 square kilometers, has an estimated 800 million barrels of oil and 4.8 trillion cubic feet (tcf) of gas.
The Singkil block, which has a surface area of about 10,700 sq km, on the other hand, has an estimated 1.4 billion barrels of oil and 8.6 tcf of gas.
To date, the regular auction for the first phase of oil and gas blocks is still ongoing, with remaining working areas including the Arakundo block in Aceh, the Bengara 1 block in North Kalimantan and the Maratua 2 block in the Makassar Strait.
The government offered five oil and gas working areas and one exploitation working area in the auction with what it said were “more attractive” terms and conditions, as part of the country’s efforts to boost investment and meet its ambitious oil and gas production targets by 2030.
The oil and gas blocks have, in total, an estimated 3.94 billion barrels of oil and 14.08 tcf of gas, energy ministry data show.
Jabung Tengah and Paus block auction
The government launched at the same event the bidding round of two working areas: Jabung Tengah block in the onshore and offshore Jambi and Riau Islands as well as the Paus block in the offshore East Natuna Sea.
Both oil and gas blocks have, in total, an estimated 200 million barrels of oil equivalent (mmboe) and 2.5 tcf of gas.
The schedule for direct proposal tender for both blocks begins on Nov. 8 until Dec. 7.
Indonesia’s oil consumption is forecast to more than double to 3.97 million barrels of oil per day (bopd) by 2050, according to Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) data, while natural gas consumption is expected to more than quadruple to 26,000 million standard cubic feet per day (mmscfd) in the same time period.
The country’s oil industry hit its peak in the 1970s and 1980s, when oil production exceeded 1 million bopd and oil exports drove economic growth.
However, production has been steadily declining – mostly due to aging wells and a lack of new discoveries – and was last recorded at 616,600 bopd in June this year, according to SKK Migas data.
