Indonesian independent Bumi Pratiwi Hulu Energi has won the Bawean oil and gas block offshore East Java and has pledged to restart production from the asset within a year.

Bumi Pratiwi Hulu’s firm five-year commitment to win Bawean, which was one of six working areas offered in Indonesia’s first licensing round of 2022, includes repairing production facilities, constructing a development well, drilling two workover wells and performing a geology, geophysics and reservoir engineering study.

Potential reserves at Bawean are estimated at about 100 million barrels of oil and 680 billion cubic feet of gas, not including the existing Camar field on the block. Bawean’s cost recovery production sharing contract has a 75:25 split for oil and a 70:30 split for gas.

Bumi Pratiwi Hulu has pledged to invest at least $22.39 million at the 2756-square kilometre block and the company also stumped up a $300,000 signature bonus.

The Ministry of Energy and Mineral Resources oil and gas director-general Tutuka Ariadji said: “Bawean can contribute to the government’s programme in increasing oil and gas production in Indonesia.”

Acreage on offer

Indonesia in July officially launched its first oil and gas licensing round of the year with six working areas — five exploration blocks and one exploitation area — being made available with “more attractive terms and conditions”.

On offer via the regular tender process were Bengara I onshore North Kalimantan, Arakundo onshore and offshore Aceh, and the offshore South Makassar block. Meanwhile, the Bawean, Offshore North West Aceh (Meulaboh) and Offshore South West Aceh (Singkil) blocks were available via the direct offer mechanism.

Bids for the Bawean area closed on 23 August while applications for Offshore North West Aceh and Offshore South West Aceh closed on 6 September. The deadline for the three regular tender blocks is 17 November 2022.

During the bidding process, the Indonesian government can stipulate a certain area in which national oil company Pertamina may have the right to acquire a 15% participating interest from bidder who wins the award.

Implementation of this participating interest would be on a business-to-business basis, the ministry earlier confirmed.

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