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Indonesia to auction at least eight exploration blocks
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Deputy Energy and Mineral Resources Minister Arcandra Tahar. (Antara/Akbar Nugroho Gumay)
T
he government is set to put at least eight exploration blocks up for auction this week, making it the third effort to push for higher oil and gas production in the country this year.
Deputy Energy and Mineral Resources Minister Arcandra Tahar said over the weekend that the blocks had been selected under a joint study (JS), which in short gives more complete data about one block's profitability.
A JS is a process where a potential bidder conducts preliminary research on its targeted oil and gas block to determine whether it is profitable for them.
“We will open another auction for new blocks, which has gone through a joint study,” he said, adding that the auction would be done in a direct offer scheme, or potential partners have a deadline of only 45 days to submit their proposals of participation.
Arcandra did not disclose the name of the blocks, saying that it was still in the ministry’s discussions to select the blocks that have the highest potential to lure investors.
Apart from offering exploration blocks, the ministry is also set to announce the winners of the second auction and new contractors of on-stream blocks that are set to expire in 2022.
The second auction is comprised of six blocks, three of which are exploration blocks – Banyumas, Andika Bumi Kita (ABK) and South East Mahakam. Meanwhile, the three on-stream blocks are South Jambi B, Makassar Strait and Selat Panjang. (bbn)
