The Ministry of Energy and Mineral Resources offers 12 oil and gas (oil and gas) blocks or working areas (WK) 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 Ministry of Energy and Mineral Resources, Tutuka Ariadji, said the offer was lower than last year. It is noted that the government offered 14 oil and gas blocks throughout 2021. "In 2022, we will prepare an auction for 12 oil and gas WKs," said Tutuka, quoted from Antara, Wednesday (19/1). The offer, said Tutuka, 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. Meanwhile, he said the government offered 14 conventional oil and gas WKs or 140 percent of the 10 WK target.
The announcement of conventional oil and gas WK offers was carried out in two stages, namely on 17 June 2021 as many as six WK and on 29 November 2021 as many as eight WK. "From the first stage of the bidding, the winner has been obtained and the signing of a cooperation contract has been carried out in two WK, namely Liman WK and South CPP WK," explained Tutuka. He claimed that the increase in the number of offers of oil and gas CAs last year proved that investors were still interested in oil and gas CAs in Indonesia. Even so, the Ministry of Energy and Mineral Resources 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 the contractor split. Tutuka stated for oil starting from 80:20 for geological, infrastructure, and resource risks in the very low category 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.
