Jakarta, CNBC Indonesia – Oil and gas companies, which had previously left Indonesia, are reportedly starting to look back at the oil and gas potential in the country. Especially after the discovery of the potential for giant oil and gas reserves in the Andaman area, off the coast of Aceh.
Head of SKK Migas Dwi Soetjipto said the discovery in Andaman became a opening player or an opening for world investors to come back to Indonesia. In fact, Total oil and gas companies from France that have left Indonesia are starting to look at Indonesia’s oil and gas potential.
In addition to Total, there is also a giant oil and gas company from Norway, namely Equinor who also looks at Indonesia’s oil and gas potential. The interest can be reflected in the process of holding the WK auction stage 1 2022.
ADVERTISEMENT
SCROLL TO RESUME CONTENT
–
“We have already communicated with Total and Equinor. We have communicated, just wait and hope that Total really comes in,” said Dwi when met at the Jakarta Convention Center, Wednesday (27/7/2022).
Total through Total E&P Indonesie (TEPI) has previously carried out exploration and exploitation activities in the Mahakam Block. However, the management period ended in 2017 and PT Pertamina (Persero) succeeded in taking over the block.
To note, the Ministry of Energy and Mineral Resources (ESDM) has officially auctioned 6 oil and gas working areas (WK) in the first phase of bidding in 2022. The WKs are offered through a direct bidding mechanism (joint study) and the regular auction also attracts multinational companies.
Director General of Oil and Gas Tutuka Ariadji at the Ministry of Energy and Mineral Resources said that in this auction there were multinational companies or companies operating in many countries participating. But unfortunately Tutuka has not detailed in detail about these companies.
“Auction that direct offer/joint study there are multinational companies (as participants). We will announce it around September,” said Tutuka, quoted on Friday (22/7/2022).
As for the first phase of the oil and gas WK bidding, the Government auctioned 3 WK through direct bidding, namely the Bawean WK (exploitation CA) and two exploration CAs, namely the North West Aceh (Meulaboh) Offshore WK, and the South West Aceh (Singkil) Offshore WK.
Access the Bawean WK bid document starting on July 20, 2022 until August 19, 2022 and the deadline for submitting participation documents is August 23, 2022. As for the WK Offshore North West Aceh (Meulaboh) and WK Offshore South West Aceh (Singkil), access bid documents starting on July 20, 2022 until September 2, 2022, while the deadline for submitting participation documents is September 6, 2022.
Tutuka hopes that this time the auction of oil and gas WK will attract many investors, both domestic and foreign. In order to attract more investors, the Government has also changed the terms and conditions, including improving the Contractor’s profit split by taking into account the WK risk factors, Signature Bonus open for bargaining, FTP becomes 10% shareable, application of 100% DMO pricing during the Contract, provides flexibility in the form of the contract (PSC Cost Recovery or PSC Gross Split).
In addition, the new provisions relinquishment (no return of part of the area in the 3rd year of contract), easy access to data through the Oil and Gas membership mechanism Data Repository (MDR) as well as providing incentives and tax facilities in accordance with applicable regulations. “We change (term and condition) to make it more interesting. As for taxes, we will open a discussion later,” he added.
Regarding these changes, continued Tutuka, there are already positive signals. However, the Government remains open to discussions so that more investors are interested in investing in Indonesia.
Next Article
BOS SKK Migas Reveals the Target of 1 Million Barrels is Getting Harder, Why?
–
–
(pgr/pgr)
–
