Work Area Auction Results Become a Positive Signal for RI Oil and Gas Investment
The government hopes that the results of the 2021 Oil and Gas Working Area Direct Bidding Auction Phase I will be a positive signal that Indonesia's upstream oil and gas investment is still quite promising, in the midst of today's challenging global conditions.
Work Area Auction Results ( Source : Pixabay )
Of the four CAs offered, two CAs already have winners, namely WK South CPP and WK Liman. The contract scheme used in the two CAs is PSC Cost Recovery.
"In the Migas WK auction, which is the first time during the Covid-19 pandemic, the government has determined PT Energi Mega Persada as the winner of the auction for South CPP WK and Husky Energy International Corporation as the winner of the Liman WK auction," said Director General of Oil and Gas Tutuka. Ariadji in the announcement of the winner of the auction.
For WK South CPP, the total value of the first 3 years of firm commitment is USD13.6 million and a signature bonus of USD500,000. While WK Liman, the total commitment for the first 3 years is USD 6.7 million and a signature bonus of USD 200,000. "The total investment commitment of the 2 WKs is USD 20.3 million and the signature bonus is USD 700,000," said the Director General of Oil and Gas.
After the announcement of the winner of this auction, the government will send an official notification letter to the winner of the auction which must be responded with a Letter of Intent, no later than 14 working days after the notification is received. In addition, PT Pertamina (Persero) is entitled to receive a 15% PI offer in accordance with the terms and procedures stipulated in the South CP and Liman WK Auction Documents.
On this occasion, the government also invited investors to participate in the Regular Auction WK Gas Phase I in 2021 consisting of 2 Work Area is Merangin III and North Kangean. The schedule for access to Bidding Documents is still open until October 12, 2021, while the entry of Participation Documents is on October 12 to 14, 2021.
"We invite all companies that meet the requirements to register and participate in regular tenders," closed Tutuka.