Reuters: Indonesia Increases Investor Share for Oil, Gas Blocks Amid Low Oil Prices

Indonesia is raising the share of production on offer to oil and gas investors in its latest auction of exploration assets, after a string of companies relinquished assets following a more than 50 percent drop in oil prices since June last year.

Typically the production split is set at 15-85 for oil, where 15 percent of output goes to the contractor and the rest to the government. In the latest bidding round, companies are being offered shares of up to more than double at 35 percent for oil, upstream oil and gas director Djoko Siswanto said on Friday. For gas, the share for the oil companies has been hiked to 35-40 percent from 30 percent normally.

"It's intended to attract investors (and) to make these blocks attractive to develop and economically viable for investment return," Siswanto told Reuters, referring to the current drop in oil prices. MORE

Indonesia is raising the share
of production on offer to oil and gas investors in its latest
auction of exploration assets, after a string of companies
relinquished assets following a more than 50 percent drop in oil
prices since June last year.
    Typically the production split is set at 15-85 for oil,
where 15 percent of output goes to the contractor and the rest
to the government. In the latest bidding round, companies are
being offered shares of up to more than double at 35 percent for
oil, upstream oil and gas director Djoko Siswanto said on
Friday. For gas, the share for the oil companies has been hiked
to 35-40 percent from 30 percent normally.
    "It's intended to attract investors (and) to make these
blocks attractive to develop and economically viable for
investment return," Siswanto told Reuters, referring to the
current drop in oil prices.