ASIATODAY.ID, JAKARTA – The Indonesian government has again opened opportunities for investors to participate in exploration and production in new oil and gas working areas. It is hoped that the oil and gas block auction plan will attract the interest of global and domestic investors to participate in developing Indonesia’s natural resource potential and will increase the country’s oil and gas production.
By increasing oil and gas production, it is hoped that Indonesia can reduce dependence on energy imports, so that national energy security can be increased. Apart from that, increasing oil and gas production will also make a positive contribution to the country’s economy, both in terms of state revenue and employment.
Over the next four years, the Indonesian Government through the Ministry of Energy and Mineral Resources will prepare 60 oil and gas blocks to be offered to investors, including 14 Potential Working Areas, which have been and will be offered from 2024 to 2028.
“From the 34 joint studies that we have, we also have savings in the oil and gas area. There are 60 oil and gas blocks that we are preparing for the next 4 years, so Cooperation Contract Contractors (KKKS) are welcome to submit cooperation with us with the Work Unit “Specifically for the Implementer of Upstream Oil and Gas Business Activities (SKK Migas) to make these areas new oil and gas blocks again and of course with attractive incentives,” said the Director of Upstream Oil and Gas Business Development, Ariana Soemanto in Surabaya, quoted Friday, October 18, 2024.
Ariana explained that the government had taken the initiative to make adjustments to the upstream oil and gas investment scheme, by providing flexible options for KKKS to be able to use a cost recovery scheme, or even by using a new gross split scheme.
“Apart from that, KKKS can go straight over without joint studies and can explore in open areas. There is also an additional exploration period or more than 10 years, we can still find it. This means that this flexibility is given by the government. If there is no such facility, we will not find it either. “5 TCF (Discovery of Gas Reserves in the North Ganal WK, East Kalimantan),” continued Ariana.
He continued that currently the government is also working on various ideas to make oil and gas exploration even more massive.
“We are currently discussing it with SKK Migas. We could later change the previously large signature bonus into an exploration commitment. Then we will extend the contract as far as possible so that there is open area exploration, and another effort is a multi-client study,” he said. (AT Network)
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