The Government Announces Schedule for Phase II of Conventional Oil and Gas Wk Auction in 2019

Source Press Release
Company
Tags Licensing Rounds, Upstream Activities
Date May 08, 2019

After the announcement of the 2019 Phase I Auction Winner on Tuesday (7/5), today, Wednesday (8/5), the Government again announced the 2019 Conventional Oil and Gas Working Area (WK) Offer for the Business Entity / Permanent Form of Business in upstream oil and gas activities. The announcement was held at the Damar Room of the Ministry of Energy and Mineral Resources of Jakarta by the ESDM Director General of Oil and Gas Djoko Siswanto.

Djoko conveyed the WK offered both through the mechanism of Direct Offer and Regular Auction of 4 (four) WK consisting of 3 (three) Exploration WKs and 1 (one) Ex Production WK, with details of Work Area names, locations and minimum commitments as follows: 

A. Exploration Working Areas

No.  Working area  Location  Principal Provisions of the Contract  Auction Mechanism 
Min. Bonus (USD)  Min. Definite Commitment of the First 3 (three) Years 
1 .  Kutai  Offshore East Kalimantan  2 . 5 00,000  - G & G study - 3D Seismic 1.0 00 Km2  Regular 
2.  Bone  Offshore South Sulawesi  2 . 5 00,000  - G & G study - Seismic 3D 5 00 Km2  Regular 
3.  West Ganal  Offshore Makassar Strait  29,000,000  - G & G studies, - Seismik 2D 600 Km - 3D Seismic 600 Km2 - Drilling 4 Exploration Wells Total budget worth USD 151 . 840 .0 0 0   Regular 

B. Ex-Production Work Area

No.  Working area  Location  Principal Provisions of the Contract  Auction Mechanism 
Min. Bonus (USD)  Min. Definite Work Commitment of 5 (five) Years 
1.  West Kampar  Mainland Riau & North Sumatra  5,000,000  G & G Study, 6 Exploration Wells, 2D 500 seismic, and 3D Seismic 200 Km2 Total budget worth USD 64,433,080  Regular 

With the second phase of the oil and gas WK offering in 2019 the potential of the Signature Bonus that will be accepted by the Government is USD 39 million. The entire Work Area is offered with the Regular Auction mechanism and uses the Gross Split PSC Contract scheme in accordance with ESDM Minister Regulation Number 52 of 2017 concerning Amendments to the Regulation of the Minister of Energy and Mineral Resources No. 8 of 2017 concerning Gross Split Production Sharing Contracts.

The Government invites Business Entities and Permanent Establishments engaged in the upstream oil and gas industry that have financial and technical capabilities, are able to meet the minimum requirements for a Definite 5 Year Work Commitment or Definite Exploration Commitments, fulfill the terms and conditions of the Work Area Auction, and have performance and a good track record for being able to participate in the Auction Phase II of the Conventional Oil and Gas Working Area in 2019.

The Auction Schedule for 2019 Conventional Phase II Oil and Gas Working Areas is as follows:

Schedule  Direct Bid Auction (1.5 months)  Regular Auction (3 months) 
Access Bid Document  May 8 - June 21, 2019  May 8 - July 31, 2019 
Clarification Forum  May 13 - June 24, 2019  May 13 - August 2, 2019 
Submission of Participation Documents  June 19 - June 26, 2019  31 July - 5 August 2019 

At this Work Area Auction, the Government stipulates that access to Data Packages carried out by Auction Participants who have accessed the Bid Document is free of charge. Data Package access fees will only be charged to the winner of the Auction for each Work Area. This is done to encourage the participation of the upstream oil and gas sector at the Work Area Auction to increase oil and gas exploration activities and increase national oil and gas reserves and production in the future. (KO)

Registration and Bid Document access is carried out through the online auction website Oil and Gas Working Area at the link http://e-wkmigas.esdm.go.id. 

Click here to view further details on the blocks.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd