Indonesia Launches new Licensing Round

The four blocks on offer could contain around 4 billion bbl of oil.

Indonesian Energy Minister Arifin Tasrif

Indonesia’s energy ministry launched a bidding round on four oil and gas blocks as the country seeks more investments in its upstream oil and gas sector.

The four blocks include the Sangkar block in offshore and onshore Central and East Java, the Peri Mahakam block in offshore and onshore East Kalimantan, the Bunga block in offshore East Java, and the Bose block in onshore and offshore East Nusa Tenggara.

Indonesian Energy Minister Arifin Tasrif was quoted by Reuters as saying that the Southeast Asia country aims to produce 1 million BOPD and 12 Bcf/D of gas in 2030.

The four blocks on offer have estimated combined resources of 3.73 billion bbl of oil and 300 Bcf of gas, according to Reuters, citing the Indonesian Energy Ministry.

Indonesia has also awarded the West Kampar block to a consortium of Aserra Petrolindo Gemilang and SPR Langgak. The consortium has agreed to make a $32.5-million investment to undertake exploration and exploitation activities at the block. It also committed to a $250,000 signature bonus.

During the first 5 years, the consortium will undertake geological and geophysical exploration work including 2D seismic for 250 km, 3D seismic on 50 km2, and then the drilling of three exploratory wells. Further exploitation commitments of the consortium also include four development wells, five well workovers, and building production facilities.