ASIATODAY.ID, JAKARTA – The Indonesian government continues its efforts to strengthen national oil and gas reserves.
The Ministry of Energy and Mineral Resources (ESDM) has officially appointed TIS Petroleum (Asia) Pte Ltd as the operator of the Perkasa Oil and Gas Working Area (WK) after winning the Direct Bid Auction for Oil and Gas Working Areas Phase I of 2025.
The decision is stipulated in Ministerial Decree No. 87.K/MG.04/DJM/2025 dated September 3, 2025, with a firm commitment of USD 2.25 million for the first three years and a signature bonus of USD 300,000.
According to the Director General of Oil and Gas, Laode Sulaeman, the firm commitment includes two Geological and Geophysical (G&G) studies as well as the acquisition and processing of 200 km² of 3D seismic data.
“The Perkasa Working Area is located offshore East Java with estimated reserves of 228 million barrels of oil (MMBO) or 1.3 trillion cubic feet of gas (TCF). This decision serves as an important basis for the next contractual process,” Laode stated in Jakarta, Wednesday, September 10, 2025.
New Opportunity: Gagah Working Area in South Sumatra
In addition to awarding the Perkasa Working Area, the government also announced a new investment opportunity in the Gagah Working Area, located in South Sumatra. Covering an area of 1,595.48 km², it is estimated to hold 173 MMBO or 1.1 TCF of reserves.
The Gagah block will be offered under a Cost Recovery production sharing contract scheme. The firm commitment for the first three years includes G&G studies and the acquisition of 100 km² of 3D seismic data, with a minimum signature bonus of USD 300,000.
Interested companies or permanent business entities (BUT) may submit direct proposals without joint studies within 30 calendar days, with a proposal period of up to six months. Investors are also allowed to propose different terms and conditions according to their business needs. Detailed information is available on the official ESDM website.
Strengthening Indonesia’s Oil and Gas Investment Climate
Laode emphasized that the government is committed to improving the upstream oil and gas investment climate through a number of incentives, including:
Increased profit-sharing ratios
Flexibility in choosing between Cost Recovery or Gross Split contract schemes
Provision of 10% First Tranche Petroleum (FTP)
100% Domestic Market Obligation (DMO) pricing
Removal of relinquishment obligations during the first three years
Easier access to oil and gas data for investors
“These steps are part of the government’s strategy to attract investment while ensuring Indonesia’s energy security in the face of global challenges,” Laode concluded. (AT Network)
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