Indonesia to Auction 11 Oil, Gas Blocks This Month

Indonesia will open 11 oil and gas blocks for auction starting this month, according to Investor Daily news portal.

Of the 11, three conventional and non-conventional blocks will be available through a direct offer, while five conventional blocks will be up for bid in a regular tender scheme.

Those on offer through regular tenders are: Rupat Labuhan in offshore Riau and North Sumatra; West Asri in offshore Lampung; Oti, offshore East Kalimantan; North Adang, offshore West Sulawesi; and Kasuri II, onshore Papua.

Blocks available through direct offers are: North Jabung, onshore Riau and Jambi; Southwest Benggana, onshore East Kalimantan; West Berau, offshore West Papua; Blora Deep, Central Java; Batu Ampar in Riau; and Sentral Bangkani, Central Kalimantan.

Blora Deep, Batu Ampar and  Sentral Bangkani are unconventional blocks. 

With oil prices on a sharp decline, the government expects few investors to come forward under the production sharing contract (PSC) regime. Instead, the ministry is formulating a rule on oil and gas agreements as an alternative for the commonly-used PSC.

The options available are a split gross contract or a sliding scale, through which operating cost reimbursements will no longer be borne by the government.  

Results are expected to be announced in November.