The Energy and Mineral Resource aims to complete eight oil and gas block tenders, which will be conducted online, by December. (ID Photo/Emral Firdiansyah)

Govt Sweetens Profit Sharing Deal in Oil and Gas Blocks

BY :RETNO AYUNINGTYAS

SEPTEMBER 14, 2015

Jakarta. Indonesia is offering a higher proportion of profit sharing for eight oil and gas blocks on auction this month, in an effort to attract investors to the project.

The government will provide a profit sharing of 30 percent to 35 percent for oil, and 35 percent to 40 percent for gas, said Djoko Siswanto, upstream oil and gas director at Energy and Mineral Resources Ministry.

The state usually offers only 15 percent of profit for oil and 30 percent for gas.

Oil and gas blocks on offer through regular tenders are: Rupat Labuhan in offshore Riau and North Sumatra; Nibung, onshore of Riau and Jambi; West Asri in offshore Lampung; Oti, offshore East Kalimantan; Manaka-Mamuju, offshore West Sulawesi; and Kasuri II, onshore Papua.

Blocks available through direct offers are: Southwest Benggana, onshore East Kalimantan; West Berau, offshore West Papua.

In regular tender, companies bid for the project based on exploration data provided by the government, while in the direct offers, investors would conduct joint a study with the government.

The ministry aims to complete the tender, which will be conducted online, by December.

Investor Daily

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