Indonesia Tweaks Oil Terms To Attract Investment
New terms would allow contractors more than 50% equity share in some new blocks.
Indonesia’s energy minister announced the government had made improvements in its oil and gas terms that would allow contractors to have equity shares of more than 50% in some new blocks to attract investment.
The nation is keen to boost output from its rich gas reserves while it still can, as global investors shift increasingly away from fossil fuels.
Energy Minister Arifin Tasrif said 68 of the country’s 128 hydrocarbon basins remained entirely unexplored.
Tasrif said the new terms were being offered starting from the previously announced third bidding round this year. The nation is offering three exploration blocks—Akimeugah I and Akimeugah II onshore blocks, each with estimated gas resources of 15 billion BOE, and the Bobara exploration block located off West Papua. Bobara has estimated oil and gas resources of around 6.8 billion BOE.