The Ministry of Energy and Mineral Resources (ESDM) through the Directorate General of Oil and Gas (Migas) has announced April 16 the winners of the Direct Bidding Auction for Phase II of Oil and Gas Working Areas (WK) in 2024, consisting of WK Kojo, WK Binaiya, WK Serpang, WK Gaea and WK Gaea II.
Acting Director General of Oil and Gas, Tri Winarno, said that, of the five winners that have been determined, the total investment value from the firm commitment for the first 3 years of the exploration period reached USD21.7 million.
'From our calculations, the signature bonus that will be received by the Government from these five WK oil and gas is USD1.1 million,' said Tri.
The Ministry of Energy and Mineral Resources has determined the Winning Company for the 2024 Phase II Oil and Gas WK Direct Bidding Auction for 5 Working Areas, with the following details:
Tri said that with the determination of the winner of the Phase II Oil and Gas Working Area, it proves that the upstream oil and gas industry in Indonesia still has an attraction for investors. The government continues to strive to create a better investment climate for investors by improving regulations including improving the contractor's profit sharing scheme, incentives, and contract provisions.
'In the last 4 years, since the oil and gas working area tender with more attractive terms and conditions, 24 new Cooperation Contracts (KKS) have been signed,' he explained.
Tri hopes that the winners of the oil and gas working area auction can contribute to increasing energy security in Indonesia, and properly implement the definite commitments that have been set.
'We urge the winners of the oil and gas working area auction to be able to properly implement the definite commitments that have been set and immediately complete their cooperation contracts,' he concluded.
In his explanation, Tri said, according to the direction of the Minister of Energy and Mineral Resources to support increased oil and gas production, both for the short and long term, there are 3 main strategies that are carried out with the support of prepared policies. First, in the short term the Government will optimize technology, including horizontal multi-stage fracturing and the implementation of Enhanced Oil Recovery (EOR).
The second strategy is reactivation of idle wells and fields, either done by the KKS Contractor itself or in collaboration with partners. And finally, the Government will conduct massive exploration. In the next two to three years, around 60 oil and gas work areas will be prepared.
Source: Ministry of Energy and Mineral Resources
