Indonesia’s Ministry of Energy & Mineral Resources (ESDM) has launched the second round of the nation’s 2022 licensing round, offering four oil and gas contract areas with sweetened terms intended to stimulate interest and attract investment.

“The improvements made are in the form of improving fiscal provisions, setting incentives and improving terms and conditions in the bidding of ‘Oil and Gas Work Areas’ to make them more attractive to investors,” said the ministry’s director general for oil and gas, Tutuka Ariadji.

Up for grabs are the Sangar block offshore and onshore East and Central Java, the Bunga block offshore East Java, the Peri Mahakam block onshore and offshore East Kalimantan and the Bose block offshore and onshore East Nusa Tenggara.

The 8123-square kilometre Sangkar block is being offered via the direct tender (Penawaran Langsung) model.

The minimum exploration commitment is geological and geophysical (G&G) studies, and the acquisition and processing of at least 150 square kilometres of 3D seismic.

Sangkar’s estimated reserves are pegged at 300 billion cubic feet of gas and 130 million barrels of oil.

Interested players

Players interested in Bunga, which covers 8500 square kilometres, will have to perform G&G studies and acquire and process a minimum of 350 square kilometres of 3D seismic. Local media reported the Bunga working area as having estimated reserves of 1300 million barrels of oil equivalent.

Bunga is also being offered via the direct tender process.

Similar reserves potential is being attributed to the 7414-square kilometre Peri Mahakam block, which too is available via direct tender.

Here the minimum exploration commitment is G&G studies, the acquisition of 150 square kilometres of 3D seismic and the drilling of one exploration well.

The ESDM is offering the Bose block via the regular auction (Lelang Reguler) route. This 8739-square kilometre tract will require prospective bidders to commit to G&G studies and the acquisition and processing of 500 line kilometres of 2D seismic.

Companies interested in the three direct tender blocks will need to get their skates on as bids close on 10 January 2023 while the deadline for submissions for Bose is 24 March next year.

Bid documents for the two tender processes respectively are available until 6 January and 22 March 2023.

Meanwhile, the ESDM awarded the West Kampar block to a consortium of Indonesian companies Aserra Petrolindo Gemilang and SPR Langgak.

The duo has pledged to invest a minimum of $32.56 million and within a year have oil flowing from the West Kampar, which is home to historic discoveries including Pendalian.

This expenditure includes an exploration workscope comprising G&G studies, 250 line kilometres of 2D seismic, 50 square kilometres of 3D seismic and the drilling of three exploration wells.

The co-venturers’ exploitation commitment comprises the construction of production facilities, the drilling of four development wells plus five well workovers and a geology, geophysics and reservoir engineering (GGRE) study.

Aserra Petrolindo Gemilang and SPR Langgak paid a $250,000 signature bonus to secure the West Kampar working area, which was offered via the direct bid process.

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