ASEAN KEY DESTINATIONS
Government expects to name operators of 7 blocks in November
The Energy and Mineral Resources Ministry expects to name the operators of seven oil and gas blocks, including four onstream blocks, in November.
The four onstream blocks are South Jambi B, Selat Panjang, Makassar Strait and West Kampar, while the three exploration blocks are Banyumas, Andika Bumi Kita and Southeast Mahakam.
"We have decided to combine the seven blocks to immediately find new operators," Energy and Mineral Resources Ministry Oil and Gas Director General Djoko Siswanto said on Wednesday.
The West Kampar block, which is located onshore in Riau, is the latest block to be added to auction list, Djoko said, adding that the block would attract investors as it had potential reserves of 8.3 million stock tank barrels (mstb).
“We've set the signature bonus at US$5 million with a five-year firm working commitment [KKP]," he said, adding that the total KKP cost was $59.03 million.
The former operator of the block, local energy firm Sumatra Persada Energi (SPE), went bankrupt in 2016, the ministry said.
SPE obtained a 30-year operation permit for the block that was due to expire in 2035, but the company left the block with a debt of Rp 1.3 trillion (US$87.57 million), which is subject to government reevaluation.
Djoko said proposals had been received for six of the blocks, but not Southeast Mahakam. “We plan to assign Pertamina to operate the blocks that fail to get operators. I personally believe the company is capable of operating them," he said.
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