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View all search resultsIndonesia offers 10 new oil and gas projects as Middle East conflict heats up
The Energy and Mineral Resources Ministry offered up to a 50 percent split for potential cooperation contractors (KKKS), a significant bump up from the previous limit of 15 to 30 percent.
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Out to sea: The Oyong oil and gas rig is seen in the Sampang Block, located in the Madura Strait, off the coast of East Java. Medco took over the block from Ophir Energy in 2019 after Medco acquired Ophir. (SKK Migas/SKK Migas)
T
he government is going to offer 10 new oil and gas block development projects across the country for tender amid concerns over choking supply and skyrocketing energy prices prompted by the Middle East conflict.
Energy and Mineral Resources Ministry oil and gas director general Laode Sulaeman revealed that the fields were part of 110 potential areas the ministry had mapped and studied as of last month.
“We are providing greater ease and opening opportunities for prospective investors, oil and gas companies with the capability to conduct exploration and exploitation in Indonesia,” Laode said in a statement announcing the plan on Wednesday.
Two of the blocks, Rupat and Puri, are located in Sumatra while Kalimantan hosts three in Pesut Mahakam, Bengara II and Maratua II. Java and Sulawesi each have one block, namely Karapan Baru and South Matindok, respectively, while the other three are Lao Lao, Rombebai and Jayapura, all located in Papua.
The ministry offered up to 50 percent split for potential cooperation contractors (KKKS), a significant bump up from the previous limit of 15 to 30 percent, and the KKKS are free to choose between cost recovery or a gross split contract in the development.
The contractors would also be showered with incentives designated for upstream oil and gas industries and would not be subject to indirect tax during exploration, reads the statement.
The ministry offered two channels of involvement comprising a regular tender, which the ministry routinely holds every year, alongside what it called “direct offering via joint study”.
