Offering Phase II Work Area, Ministry of Energy and Mineral Resources Seeks to Develop the Upstream Oil and Gas Sector Through Policy/
The Ministry of Energy and Mineral Resources (ESDM) announced Phase II of the 2023 Oil and Gas Working Area (WK) Offer which was held to coincide with the opening of the 2023 IPA Convention and Exhibition (Convex) themed Enabling Oil & Gas Investment and Energy Transition for Energy Security at ICE BSD, Tangerang, Tuesday (25/7/2023).
The three oil and gas work areas offered by the government to oil and gas business actors are Work Areas Natuna D-Alpha, Panai and Patin. At this occasion, the Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that the government is committed to developing the upstream oil and gas sector, and has made policies to facilitate and attract investors in the upstream oil and gas sector to invest in Indonesia. Tutuka explained that several Oil and Gas laws and regulations are continuously being discussed for improvements. One of them is the provision in the fiscal sector which involves the Ministry of Finance to refine the existing provisions in Government Regulation Number 27 of 2017 and Government Regulation Number 53 of 2017. “This is expected to create a more attractive investment climate for investors while still considering efforts to reduce carbon emissions which are currently an international concept,” he said at ICE BSD, Tuesday (25/7). Furthermore, Tutuka said that the improvement of the Gross Split Production Sharing Contract scheme to a New Simplified Gross Split is also being carried out, with the spirit of making improvements in the oil and gas management system to improve the investment climate. With the announcement of the Oil and Gas Work Area Offer, the Government invites Business Entities and Permanent Establishments engaged in the upstream oil and gas industry that have financial and technical capabilities, able to meet the minimum Firm Commitment requirements, meet the basic terms and conditions of the Work Area Offer, and have good performance and track record to be able to participate in the Phase II Oil and Gas Work Area Offer in 2023.
On the same occasion, the Minister of Energy and Mineral Resources witnessed the signing of the Contract resulting from the Work Area Offer between the Acting Governor of Aceh, SKK Migas, BPMA and Cooperation Contract Contractors for Work Area Bunga and Work Area Bireun Sigli.
From the two oil and gas Work Area, the total definite commitment investment from this signing is USD 40,000,000 with a signature bonus of USD 1,100,000.
The two Production Sharing Contracts for Exploration Work Areas have a term of 30 years, and all Cooperation Contract Contractors have completed their financial obligations, namely payment of a signature bonus and submitting performance guarantees in accordance with the provisions of the regulations in effect prior to signing the Cooperation Contract.