Ministry of Energy and Mineral Resources Offers 12 Oil and Gas Blocks to Investors

The Ministry of Energy and Mineral Resources (ESDM) offers 12 oil and gas blocks or working areas to investors in 2022. The contracts offered will be more flexible in order to increase upstream oil and gas business activities in Indonesia.

Director General of Oil and Gas at the ESDM Ministry, Tutuka Ariadji, said that this offer would refer to the ESDM Ministerial Regulation (Permen) Number 12 of 2020 concerning Gross Split Production Sharing Contracts. The government will give potential investors the option to use a cooperation contract with a cost recovery or gross split scheme.

He claimed that the increase in the number of offers of oil and gas blocks last year proved that investors were still interested in oil and gas blocks in Indonesia.

Even so, the ESDM Ministry will continue to improve the form and main provisions of the cooperation contract to make it more attractive.

In addition to flexible bidding, another improvement made by the government is increasing contractor split. Tutuka stated that for oil will be starting from 80:20 for very low category of geological, infrastructure, and resource risks up to 55:45 for the very high category.

Meanwhile, natural gas starts at 75:25 for the very low category to 50:50 for the very high category.