TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Indonesia to auction three onstream blocks in August

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Tue, July 31, 2018   /   03:17 pm
Indonesia to auction three onstream blocks in August Deputy Energy and Mineral Resources Minister Arcandra Tahar (JP/Dhoni Setiawan)

The government is set to open bidding for three ready-to-produce oil and gas blocks — Makassar Strait, Selat Panjang and South Jambi B — in the first week of August.

Deputy Energy and Mineral Resources Minister Arcandra Tahar said on Monday that there was enough data on the three blocks to entice potential bidders.

“[The auction] will happen as soon as possible. We expect to start in the first week of August,” he said.

The existing contracts for the Makassar Strait and South Jambi B blocks are set to expire in 2020, while the contract for the Selat Panjang block is set to expire in 2021.

The Makassar Strait block is currently operated by United States energy giant Chevron, which is not seeking a contract extension. The company believes operating the block would be uneconomical if it was included in the Indonesia Deepwater Development (IDD) mega gas project.

Regarding the Selat Panjang block, Arcandra previously said the existing operator, Petroselat Ltd, had filed for bankruptcy, while the recently chosen operator of the South Jambi B block, PetroChina, a Chinese oil and gas state-owned firm, had decided to back out of the project.

Previously, Energy and Mineral Resources Ministry Oil and Gas Director General Djoko Siswanto said the South Jambi B block faced internal issues.  (bbn)