Indonesia offers 3 unconventional blocks

JAKARTA, October 31, 2016 – Indonesia announced on Monday that it would offer to bidders three unconventional onshore blocks on the islands of Sumatra and Kalimantan.

The Batur Ampar shale block in East Kalimantan province, located near existing mature conventional resources, is believed to hold some 200 bcm (7.08 tcf) of gas and 21.4 million barrels of oil.

The Raja and Bungamas blocks in South Sumatra together could hold almost 85 bcm (3 tcf) of gas, according to a report in Upstream magazine.

Bidders can either make an upfront payment for the rights to the blocks or propose production splits, Reuters reported. In previous bidding, production splits were typically determined by the government of Indonesia.

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