Indonesia incentivises oil and gas exploration
JAKARTA, September 21, 2023 – Indonesia has changed its current oil and gas contract terms to incentivise participation in its upstream sector, including allowing contractors more than 50% shares in certain new blocks, Indonesia’s Minister of Energy and Mineral Resources Arifin Tasrif announced on Thursday.
The rise in possible equity share applies to both cost recovery and gross split contractual schemes.
The new terms will be applied in the latest bid round launched earlier in the week that saw three exploration blocks put up on offer. It is the country’s third oil and gas bid round in 2023.
Indonesia aims to put 10 oil and gas concessions on offer in 2023.
According to Tasrif, 68 out of the 128 oil and gas basins in Indonesia remain unexplored.
The minister also called on the private sector to invest in CCS developments to cut down on the energy industry’s carbon footprint.
The country currently has 15 CCS and CCUS developments in development, with most expected to be commissioned by 2030.