Indonesia Offers 14 Oil, Gas Blocks to Investors

Indonesia will offer 14 oil and gas blocks for bidding, according Energy Ministry's director general of oil and gas said in Jakarta Monday.

Most of the blocks are located in the eastern part of Indonesia.

"We are offering a new scheme," Tempo, a local news outlet, quoted I Gusti Nyoman Wiratmaja as saying.

The work areas offered through regular auctions are South CPP, Suramana I, South East Mandar, and North Arguni. The Ministry is also offering direct exploration in the West Hill Block, Batu Gajah Dua Block, Kasongan Sampit Block, as well as Ampuh, Ebuny, Onin, and West Kaimana blocks.

Bungamas and Raja coal bed methane concessions will also be up for auction in addition to Batu Ampar shale gas area.

Under the new scheme, the government is offering investors to manage the working areas using an open bid split scheme based on contractors' proposals. For non-conventional work areas, contractors can also get a sliding scale scheme, whereas the amount is calculated based on daily production.

Seven work areas are being offered directly to companies and the rest is offered through open biddings. Investors can access the bidding documents starting from July 18 until August 22, 2016. The regular auction is open until October 28, 2016.

The ministry is also preparing six new working areas for the second phase auctions.