Indonesia Picks Five Winners in 2017 Energy Tender

An oil and gas field in Indonesia. (Antara Photo/Dedhez Anggara)

By : Wilda Asmarini | on 5:09 PM February 02, 2018
Category : Business, Commodities

Jakarta. The Ministry of Energy announced on Wednesday (31/01) five winning bids in its 2017 oil and gas block tender, including businesses owned by Premier Oil, KrisEnergy and Perusahaan Gas Negara.

Former OPEC member Indonesia was once self-sufficient in oil and gas, but has been struggling for years to attract investment and prevent output from declining further.

Jakarta recently introduced tax breaks and a gross split mechanism to encourage investment in the energy sector by eliminating conflicts over project costs and reimbursements.

The ministry described the 2017 tender result as a "new era" in the country's upstream oil and gas industry, but noted that five of the conventional oil and gas blocks did not attract any bids in 2017 and will be re-tendered this year.

The 2017 tender was opened in May and was extended four times while waiting for new government regulation on the gross split production sharing contract mechanism, the ministry said in a statement.

Premier Oil said in a statement on the tender outcome that it sees "the potential for significant gas volumes which, in the success case, would be delivered to existing gas consumers in North Sumatra."

Deputy Energy Minister Arcandra Tahar told reporters on Wednesday he expects the 2018 bidding round to commence in mid-February.

Data presented by the energy ministry to parliament last week shows plans to tender 40 conventional oil and gas blocks and three unconventional oil and gas blocks this year.

Source: Reuters Source: Reuters

The table below shows oil and gas blocks expected to be tendered in the 2018 bidding round.


1. Rupat Labuhan

2. South CPP

3. Nibung

4. Batu Gajah Dua

5. Bukit Barat

6. South Tuna

7. Tongkol

8. Banyumas

9. Ampuh

10. East Sepanjang-Kangean

11. Kasongam Sampit

12. Southwest Bengara

13. Suremana I

14. Manakarra Mamuju

15. South East Mandar

16. Karaeng

17. Ebuny

18. East Tanimbar

19. West Berau

20. Onin

21. Kasuri II

22. Kasuri III

23. West Kaimana

24. North Arguni

25. Mamberamo

Terminated in 2017**

26. Air Komering

27. East Sokang

28. East Muriah

29. North Kangean

30. Palangkaraya

31. West Sangata

32. Belayan

33. Southeast Mahakam

34. South Sageri

35. Halmahera-Kofiau

36. Southwest Bird's Head

37. Semai IV

38. West Papua III

39. Cendrawasih Bay II

40. Cendrawasih Bay III


1. Shale gas Sumut Tenggara

2. Shale gas Jembar Rimba

3. Coal bed methane Sumbagsel

* Direct offer tenders are preceded by a joint study process, in which oil and gas companies and the government work together to develop seismic data for certain blocks. Companies involved in the study gain rights to match bids once the blocks are offered in the tender, discouraging other participants.

** Conventional oil and gas blocks where contracts were terminated in 2017.

*** Unlike the conventional pools of oil and natural gas, unconventional oil and natural gas do not flow naturally through the rock, making them much more difficult to produce.


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