Indonesia picks five winners in 2017 energy tender

KrisEnergy

31/01/2018 09:02

(Repeats for wider readership with no changes to text) 
    JAKARTA, Jan 31 (Reuters) - Indonesia's energy ministry 
announced on Wednesday five winning bids in its 2017 oil and gas 
block tender, including units of Premier Oil  PMO.L , KrisEnergy 
 KRIS.SI  and Perusahaan Gas Negara (PGN)  PGAS.JK . 
     
    The table below shows the results of the tender. 
         
 Work Area       Winner 
                     - Direct offers - 
 Andaman I       Mubadala Petroleum (SE Asia) Ltd 
 Andaman II      Consortium: Premier Oil Far East, 
                 KrisEnergy (Andaman II) BV, Mubadala 
                 Petroleum (Andaman II JSA) Ltd 
 Merak-Lampung   PT Tansri Madjid Energi 
 Pekawai         PT Saka Energi Sepinggan 
 West Yamdena    PT Saka Energi Indonesia 
 South Tuna      None 
                    - Regular tender - 
 Kasuri III      None 
 Tongkol         None 
 East Tanimbar   None 
 Memberamo       None 
     
    According to a statement from the ministry, five of the 
conventional oil and gas blocks that did not attract any bids in 
2017 will be re-tendered this year. 
    Deputy Energy Minister Arcandra Tahar said the next tender 
would be announced in mid-February. 
    The tender was opened in May 2017 and extended four times 
while waiting for a new government regulation on the gross split 
production sharing contract mechanism, it said, describing the 
result as a "new era" in the country's upstream oil and gas 
industry. 
    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. 
    Former OPEC member Indonesia was once self-sufficient in oil 
and gas, but has been struggling for years to attract investment 
and bring the declining output to a halt. 
    With thin interest in recent oil and gas block tenders, some 
analysts have said more work is still needed to make the new 
regime and the country's energy sector attractive. 
 
 (Reporting by Wilda Asmarini; Writing by Fergus Jensen, Editing 
by Sherry Jacob-Phillips) 
 ((fergus.jensen@thomsonreuters.com; +62 21 2992 7604; Reuters 
Messaging: fergus.jensen.thomsonreuters.com@reuters.net)) 
 
Keywords: INDONESIA ENERGY/TENDER