Indonesia picks five winners in 2017 energy tender (updated)

KrisEnergy

31/01/2018 11:12

(Adds details on 2018 tender) 
    By Wilda Asmarini 
    JAKARTA, Jan 31 (Reuters) - Indonesia's energy ministry 
announced on Wednesday five winning bids in its 2017 oil and gas 
block tender, including businesses owned by Premier Oil  PMO.L , 
KrisEnergy  KRIS.SI  and Perusahaan Gas Negara (PGN)  PGAS.JK . 
    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. urn:newsml:reuters.com:*:nL4N1F92DN urn:newsml:reuters.com:*:nL4N1JY3PK 
    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." urn:newsml:reuters.com:*:nFWN1PQ09L 
    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 3 unconventional oil and gas blocks this year.  urn:newsml:reuters.com:*:nJ9N1NK01B 
                         
    The table below shows the results of the 2017 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 
     
    The table below shows oil and gas blocks expected to be 
tendered in the 2018 bidding round. 
     
     Conventional 
  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 
                                 
     Unconventional*** 
  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. 
 
 (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