Promising bid round bolsters interest in Indonesia

Indonesia

JAKARTA, December 29, 2017 – At least four companies have bid on five of 10 blocks offered in Indonesia’s 2017 bid round, deputy energy minister Arcandra Tahar announced on Friday. Repsol, KrisEnergy and Mubadala Petroleum are among the companies that submitted bids.

Earlier in December, the Ministry of Energy and Mineral Resources, extended the submissions deadline for the licensing round to December 31. The successful auction highlights the continuing interest in Indonesia’s hydrocarbons market. Winners of the licensing round are scheduled to be revealed in February 2018, with contracts finalised in March.

While the country’s conventional blocks received a great deal of attention, the unconventional blocks did not fare as well. Of the five assets available in the 2017 licensing round, none received bids.

Of the 10 blocks offered in the licensing round, seven are available for direct tender. These include Andaman I and Andaman II off Aceh, South Tuna in the Natuna Sea, Merak Lampung (offshore and onshore Banten-Lampung), Pekawai off East Kalimantan, West Yamdena (offshore and onshore Maluku) and Kasuri III onshore West Papua.

The remaining assets are available through a regular tender and include East Tanimbar off Maluku, Memberamo, offshore and onshore Papua, and Tongol in the Natuna Sea.

Hoping to capitalise on the success of the current bid round, Indonesia plans to offer 22 oil and gas assets in a January 2018 tender. The blocks were originally part of an unsuccessful licensing round that took place in 2015-2016.

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