The government through the Ministry of Energy and Mineral Resources has again opened the Bidding for the Conventional Oil and Gas Working Area Phase I in 2022. The number of Oil and Gas Working Areas (WK) offered is six WK, consisting of one Exploitation WK with a Direct Offer mechanism, two Exploration WKs with a Direct Bid mechanism and three Exploration WKs with the Regular Bidding mechanism.
“The government invites Business Entities and Permanent Establishments engaged in the upstream oil and gas industry that have the financial and technical capabilities, are able to meet the minimum requirements for a Firm Commitment, fulfill the main terms and conditions of the Work Area Auction, and have a good performance and track record for can participate in the 2022 Conventional Oil and Gas Working Area Auction,” said Director General of Oil and Gas Tutuka Ariadji at the 2022 Oil and Gas Working Area Bidding Announcement, Wednesday (20/7).
More attractive terms & conditions will be applied in this auction, including improvement of the Contractor’s profit split by considering the WK risk factors, Signature Bonus open to bidding, FTP to 10% shareable, application of 100% DMO price during the contract, providing flexibility in the form of the contract (PSC Cost Recovery or PSC Gross Split), new relinquishment provisions (no refund of part of the area in the 3rd year of the contract), ease of access to data through the Oil and Gas Data Repository (MDR) membership mechanism as well as the provision of incentives and tax facilities according to applicable regulations.
The oil and gas CAs offered are as follows:
